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(No.  I.) 


onds  or  Greenbacks? 


FROM  THE  REMARKS  OP 


Hon.  j4RTHIR  P.  GORitiAN,  of  Maryland 
Hon.  WILLIAM  LINDSAY,  of  Kentucky 
Hon.  AMOS  J.  CIMMINGS,  of  New  York 


From  the  Congressional  Record. 


In  the  SENATE  OF  THE  UNITED  STATES,  May  34th  and 

May  27th,  and  the  HOUSE  OF  REPRESENTATIVES, 

May  3,  1898 

^  Checked     ( 
May  1913 


THE  NEW  YORkI 

PUBLIC  LiBRARYj 

I    TILDE  li_FfUlil^T, 


BONDS  0R»6f(EENBACKS? 


la  tfid  SENATE  OF  THE  UNITED  STATES,  May  24th  and  May  27th, 
and  the  HOUSE  OF  REPRESENTATIVES,  May  3,  i«98- 


The  Senate  having  under  consideration  the  bill  (H.  R.  10,100)  to  provide 
ways  and  means  to  meet  war  expenditures — 

MR.  GORMAN  said: 

It  is  said  we  propose  to  issue  bonds.  Mr.  President,  of  course  it  is  pro- 
posed to  issue  bonds.  Why  not  issue  bonds?  What  declaration  has  tner 
been  made  by  any  political  party  against  issuing-  bonds  in  time  of  war? 
What  war  was  ever  conducted  without  issuing-  bunds,  and  is.suing  them  in 
the  very  beg-inning-  of  the  conflict?  Befote  the  tirst  gun  was  fired  at  Sumter 
in  the  war  of  the  rebellion  we  began  to  issue  bond.':,  and  we  also  issued 
$150,000,000  of  greenbacks  as  a  war  measure.  Wiiat  were  the  conditions? 
Gold  and  silver  had  disappeared;  they  could  not  be  found  or  followed  into 
their  hiding  places;  there  were  no  national  banks,  and  the  State  banks  had 
disappeared,  oi",  at  least,  they  were  useless  so  far  as  the  purposes  of  the 
Government  were  concerned. 

An  enknged  currency  was  necessary.  The  act  of  July  11,  1862,  author- 
ized the  i.ssue  of  $450,000,000  of  greenbacks  or  legal-tender  notes,  and  this 
was  the  only  issue  authorized;  They  were  receivable  at  the  Treasury  for  all 
dues  and  were  then  reissued  time  and  ag-ain;  but  the  total  amount  out- 
standing at  any  one  time  was  not  over  $450,000,000.     There  were: 

Old  demand  notes $00,000,000 

One  and  two  year  notes,  bearing  5  per  cent,  interest 211,000,000 

Compound-interest  notes,  bearing  6  per  cent,  interest 2(56,000,000 

The  total  anion ut  of  notes  issued  by  the  Treasury  from  1801  to  1869  was 
as  follows: 

Demand    notes $392,070 

United  States  notes   (grccnlnn-ks) 427,768,499 

Fractional  currency 26,057,469 

Matured  debt,  interest  ceased 1,37.^,920 

Unpaid   requisitions 660,900 

Total $456,252,858 

While  from  1861  to  1869  the  debt  bearing  Interest  was.  .$2,351,699,479 

(2) 


-I  ft 

BONDS  IN  TIME   OF  WAR. 

Mr.  President,  it  is  said  that  the  great  cormorants  of  the  moneyed  insti- 
tutions are  now  after  these  bonds;  that  tliey  are  the  men  who  urge  their 
issuance.  Yes;  but  the  man  with  money,  whether  he  be  a  small  or  a  large 
holder,  can  only  get  bonds  by  paying  his  money  for  them,  loaning  it  to  the 
(Jovernment  on  a  security  as  good  as  gold  or  silver,  and  the  bonds  will  be 
paid  when  they  become  due. 

Why, should  Senators  on  this  side  of  the  Chamber,  whj'^  should  the  dis- 
tinguished Senator  from  Missouri  [Mr.  Cockreix],'  denounce  the  issuance  of 
bonds  in  time  of  war?  Our  partj^  convention,  which  met  at  a  time  when 
every  Democrat  was  incen.scd  at  the  action  of  a  man  whom  we  had  elected 
President,  who  had  asked  us  to  issue  gold  bonds  so  as  to  save  $10,000,000,  a 
proposition  which  was  rejected,  passed  a  resolution,  not  against  bonds  as 
bonds,  but  only  against  the  issuance  of  bonds  in  time  of  peace. 

The  Senator  from  Arkansas  [Mr.  Jones],  who  had  probably  more  to  do 
with  the  framing  of  that  declaration  than  anybody  else — at  least  we  hold 
liim  responsible,  whether  he  was  actually  so  or  not — is  too  astute  a  politician 
to  have  put  any  other  declaration  in  that  platform.  He  would  not  have  gone 
before  the  people  of  the  country  in  that  campaign  with  the  candidate  who 
was  our  nominee  and  the  platform  upon  which  he  ran,  a  campaign  which 
was  a  campaign  of  appeal  to  the  masses  of  the  people,  with  a  declaratiuu 
that  the  Government  should  not  have  the  right  in  time  of  war  to  issue  b(Huls 
to  save  the  life  of  the  nation. 

I  will  refer  to  what  we  did  on  this  side  in  18G2,  1864,  and  1865,  and  will 
insert  in  the  Record  the  list  of  the  bonds  that  were  issued. 

UNITED   STATES  BONDS. 

According  to  the  statement  of  the  public  debt  published  October  31,  1805, 
the  interest-bearing  debt  of  the  United  States  on  that  date  wa.^  as  follows: 

Aggregate  of  debt  bearing  coin  interest $1,161,137,691  80 

Aggregate  of  debt  bearing  lawful-money  interest...  1,190,561,787  46 


Total  interest-bearing  debt $2,.351,699,479  26 

But  in  1861,  as  Senator.s  know — and  1  refer  to  it  with  great  kindne.ss  - 
there  were  no  great  corjiorations  south  of  the  Potomac;  there  were  no  com- 
liinations  which  wei-e  robbing  the  people.  The  trusts  and  monopolies  and 
money  changers  were  not  there. 

THE  ACT  OF  FEBRUARY  28,  1861,  AUTHORIZED  BONDS. 

Mr.  TILLMAN.     And  they  are  not  there  now. 

Mr.  GORMAN.  And  they  are  not  there  now,  the  Senator  from  South 
Carolina  says.  No.  You  were  free  from  their  control.  You  attempted  to 
establish,  and  did  establish,  a  government,  and  you  conducted  a  great  con- 
flict such  as  the  world  has  never  seen  conducted  by  a  like  number  of  people. 
But  when  you  started  your  government  the  first  financial  act— the  act  of 
February   28,   1861 — authorized   bonds,   coupon   bonds,   bearing    8   per  cent. 


cr/i 


671W 


interest,  running'  for  five  and  twenty  yenrs,  and  you  continued  to  issue 
lionds  and  stock  bearing-  interest  up  to  nearly  $800,000,000.  Yonr  unfunded 
debt  amounted  to  more  than  double  the  bonds,  or  $1,600,000,000  of  treasury 
notes  and  other  obligations  which  idid  not  bear  interest — not  leg-al  tenders,  a 
friend  in  my  rear  tells  me.  No;  they  were  not  legal  tenders,  but  they  were 
convertible  into  bonds,  and  they  were  received  for  taxes  and  a  great  many 
other  things,  but  not  in  payment  of  the  export  duty  on  cotton. 

GREAT    MEN    SUPPORTED    BOTH    GOVERNMENTS    BY    ISSUES    OF 

BONDS. 

The  idea  I  wish  to  present  is  that  it  is  only  by  example,  and  by  history 
we  can  tell  what  is  proper  to  be  done.  Here  there  were  two  great  divisions 
of  the  American  people;  one  representing  exclusively  agricultural  interests, 
free  from  all  of  the  great  combinations  which  have  been  described  here  to- 
day, and  the  other,  on  this  side  of  the  Potomac,  embracing  within  its  con- 
fines practically  all  the  great  monopolies  of  which  we  hear  so  much;  and 
yet  those  great  men — for  they  were  great  men — supported  both  governments 
by  issues  of  bonds.  In  so  doing  thej'  followed  only  the  teachings  of  history. 
When  war  begins  no  government  is  ever  ready  for  it  with  ample  supplies  of 
money  in  its  treasury,  and  with  the  exception  of  Germany,  which  was  juc- 
pared  for  war,  there  is  no  other  instance  in  the  last  one  hundred  years  where 
any  government  has  been  able  to  successfully  prosecute  a  war  without  mak- 
ing a  loan  on  bonds  in  the  very  beginning. 

Jf  that  be  true,  why  should  we  hesitate  here?  Why  should  we  hesitate 
to  vote  for  tlie  issuance  of  bonds  running  ten  and  twenty  years  at  3  per 
cent,  interest?  Every  Senator  is  aware  of  the  fact  that  if  we  fail  to  make 
provision  for  that  sort  of  a  bond  at  low  interest,  and  the  crisis  comes,  a.s 
come,  in  my  judgment,  it  will,  when  within  thirty  days,  before  you  can  get 
your  tax  bill  in  operation,  the  President  of  the  United  States  and  his  Secre- 
tary of  the  Treasury,  following  the  example  of  their  predecessors,  and  as  I 
believe  they  will  be  in  duty  bound — although  there  is  doubt,  and  great 
doubt,  as  to  the  right  to  issue  bonds  for  ordinary  purposes — will  be  com- 
pelled to  issue  bonds  running  a  longer  time  and  bearing  a  higher  rate  of 
interest  than  those  proposed  to  be  issued  under  the  terms  of  this  bill. 

Why,  then,  are  we  opj-osed  to  bonds,  Mr.  President?  In  the  Senate  we 
have  met  that  question  quite  recently.  At  the  close  of  Mr.  Harrison's  ad- 
ministration, after  the  I'residential  election  of  1S92  and  before  tlie  inaugura- 
tion of  Mr.  Cleveland,  the  condition  of  the  Treasury  was  so  threatening 
that  bonds  were  asl:ed  for,  and  in  this  Chamber  we  placed  ujxjn  an  appro- 
priation bill  a  provision  authorizing  the  Secretary  of  the  Treasury  to  issue 
f.  per  cent,  bonds  on  like  terms  with  those  described  in  this  bill;  ajid  more 
Democrats  voted  for  the  proposition  than  against  it.  It  was  thrown  out  by 
the  other  House.  It  was  thrown  out,  it  was  said,  by  secret  instructions 
from  the  powers  that  were  to  be. 

SALE  OF  BONDS  UNDER  THE  ACT  OF  1875. 

Following  within  eighteen  months  after  that  influence  and  that  action, 
came  the  transaction  of  the  sale  of  the  bonds  authorized  under  the  act  of 


5 

1875,  which  every  Democrat  in  the  Senate,  and  which  nearly  all  Democrats 
ever^'where,  denounced.  What  brought  that  condition  about?  A  DEFI- 
CIENCY IN  THE  REVENUE,  AND  NOTHING  ELSE.  What  will  brinsr 
about  the  necessitjr  for  bonds  now?  A  deficiency  in  the  revenue.  In  my 
judgment — I  only  speak  for  myself — Senators  will  be  esto]iped  from  pro- 
testing- against  bonds.  The  President  may  sell  $300,000,000  of  bonds  under 
the  authorization  of  the  act  of  1875,  if,  in  his  judgment,  it  be  necessary 
to  maintain  the  honor,  the  dignity,  and  the  glory  of  his  country,  and  to 
secure  the  success  of  our  arms. 

I  think  the  amendment  of  the  minority  of  the  committee  is  wise.  The 
bonds  are  limited  in  amount  and  to  a  certain  i:>urpose,  to  be  issued  only  after 
certain  things  have  occurred.  I  THINK,  WITH  ALL  DUE  DEFEiiEXCi: 
TO  THE  AUTHORS  OF  THAT  PROVISION,  EVEN  THAT  IS  TOO 
RESTRICTED. 

Mr.  President,  at  this  session  of  Congress  the  appropriations  already 
made  for  all  purposes  of  the  Government,  or  which  are  jiending  and  about 
to  be  made,  including  the  war  expenses  and  contracts  authorized,  including 
the  sinking  fund,  amounted  to  $923,082,797;  excluding  the  sinking  fund,  to 
$872,682,797;  and  more  is  to  be  appropriated  before  the  Senate  adjourns. 
Senators  who  have  spoken  seem  to  be  fearful  of  providing/ too  much  money. 
In  my  humble  judgment  you  have  not  provided  enough,  even  with  the  pro- 
vision of  the  Finance  Committee  for  bonds  and  certificates.  I  was  not  aTix- 
ious  that  we  should  enter  upon  this  contest.  I  had  hoped  we  might  adjust 
the  matter  without  a  conflict  of  arms  in  a  manner  honorable  to  the  Ameri- 
can people.    But  that  has  passed  and  gone. 

COST  NO  MAN  CAN  ESTIMATE. 

We  have  entered  upon  a  contest.  W'hen  and  where  it  will  stop  no  man 
can  tell.  How  much  it  is  to  cost  no  man  can  estimate.  That  it  will  cost 
during  this  year  $400,000,000,  $500,000,000  possibly,  is,  in  my  judgment,  a 
moderate  estimate.  If  it  were  to  close  and  peace  be  declared  within  six 
months  from  this  time,  your  expcTiditures  would  go  on  at  a  rate,  compared 
with  peace  expenditiires,  that  no  man  can  measure  to-day.  The  complica- 
tions that  may  come  from  this  Avar  nobody  knows.  The  cost  of  closing  and 
adjusting  all  the  questions  that  will  arise  can  not  be  measured  by  tens  of 
millions  of  dollars  to-day,  in  my  judgment.     We  have  a  fair  Navy. 

Who,  after  the  occurrences  of  the  last  few  months,  expects  this  govern- 
ment to  suspend  building  war  ships?  They  will  be  multiplied  until  the 
number  reaches  that  point  where  we  will  be  supplied,  in  the  judgment  of 
the  people,  with  sufficient  war  ships  to  defend  us  from  any  act  of  aggres- 
sion. Who  can  tell  how  far  we  are  to  go  In  looking  to  the  development  of 
tlie  trade  and  commerce  which  is  being  strived  for  by  all  the  nations  of  the 
earth?  I  do  not  expect  to  see  any  action  which  will  prevent  us  from  getting 
our  full  share  of  that  trade  and  providing  all  the  facilities  for  our  war  ships 
and  ships  engaged  in  commerce. 

Mr.  President,  there  is  only  one  other  feature  of  the  bill  to  which  I 
desire  to  allude,  and  that  is  the  provision  rejKjrted  by  the  majority  of  the 
committee  and  so  strongly  advocated  by  the  distinguished  Senator  from 
Missouri    [Mr.    Cockjjeli.] — the   issuance   of    $150,000,000   of   greenbacks.     I 


6 

confess  my  amazement  that  that  distinguished  Senator  and  others  should, 
in  the  year  1898,  advocate  and  hold  that  the  issuance  of  greenbacks,  legal- 
tender  notes  of  the  Treasury,  is  now  or  ever  was  the  Democratic  doctrine  or 
was  ever  maintained  by  either  of  the  great  parties,  except  for  the  great 
emergency  of  the  war.  I  shall  take  the  liberty  of  reading  from  one  or  two 
eminent  Democrats  who  have  spoken  for  the  Democratic  party  in  times  past. 

JUDGE  THURMAN'S  REPLY. 

There  was  Judge  Thurnian.  In  1874,  on  the  floor  of  the  Senate,  when 
the  question  of  issuing  only  a  few  millions  more  of  greenbacks  was  under 
consideration,  he  made  a  si>cech.  He  had  been  clinrgetl  with  being  in  favor 
(if  inflation,  the  issuing  of  notes  by  the  (iovernnicnt,  because  he  had  gone 
through  the  Ohio  campaign  of  1873  with  liis  party,  which  there,  under  the 
control  of  Mr.  Allen,  advocated  the  greenback  theory.  Mr.  Thurman's  reply 
to  this  charge  will  be  found  in  the  Congkessional  Record  for  the  session 
of  1874,  page  2394,  when  he  said: 

"Never  did  any  man  hear  me  utter  one  word  in  favor  of  inflation.  Not 
one  word,  sir.  I  have  spoken  against  a  contraction  of  the  currency  that 
would  bring  about  too  speedily  a  resumption  of  specie  payments;  but  never 
liave  I  .spoken  in  favor  of  that  inflation  of  the  currencj'  wnich  1  think  I  see 
full  well  means  that  there  never  shall  be  any  resumption  at  all.  That  is  the 
ditference.  It  is  one  thing  to  contract  the  currency  with  a  view  to  a  re- 
sumption of  specie  payments;  it  is  aiiotlier  thing  neither  to  contract  nor 
enlarge  it.  Hut  let  resumption  come  naturally  and  as  soon  as  the  business 
and  production  of  the  country  will  bring  it  about;  but  it  is  a  very  difl'erent 
thing  to  inflate  the  currency  never  in  all  time  to  redeem  it  at  all,  and  that 
is  precisely  what  this  inflation  means.  It  means  demonetizing  gold  and 
silver  in  perpetuity  and  substituting  a  currency  of  iri*edeemable  paper  based 
wholly  and  entirely  upon  (iovernment  credit  and  depending  upon  the  opin- 
ions and  the  interests  of  members  of  Congress  and  their  hopes  of  popularity, 
whether  the  volume  ol  it  shall  Ik?  large  or  whether  it  shall  be  small.  That 
is  what  this  inflation  means.  Sir,  I  have  never  said  anything  in  favor  of 
that.  I  am  too  old-fashioned  a-  Democrat  for  that.  I  have  heard  and 
preached  too  many  hard-money  lessons  to  advocate  such  a  theorj'  as  that, 
and  although  there  are  many  friends  who  differ  with  me  in  opinion,  and 
from  whom  it  i>ains  me  to  differ,  I  can  not  give  up  the  convictions  of  a  life- 
lime,  whether  they  be  popular  or  unpopular,  whether  they  please  or 
whether  the^"  displease." 

THE  PRESIDENTIAL  CONVENTION  OF   1876. 

Now,  following  that,  which  was  in  1874,  came  the  Presidential  conven- 
tion of  1876.  In  the  greenback  campaign  which  was  made  in  Ohio  the 
Democratic  party  had  lost.  The  Democratic  party  had  been  for  hard  money, 
for  gold  and  silver,  the  monej'  of  the  Constitution,  and  it  wanted  to  right 
itself  and  relieve  itself  from  those  in  Ohio  who  were  carrying  it  toward  the 
Populistic  idea.  The  Democrats  wanted  to  recover  it  and  bring  the  party 
back  to  its  old  moorings  and  its  old  doctrines,  and  they  east  about  the 
country  for  some  man  to  lead  them,  and  they  found  in  Samuel  J.  Tilden,  of 
New  York,  a  man  who  could  carry  them,  as  they  thought,  to  victory.  They 
made  a  platform  to  suit  his  views  upon  the  financial  question,  ignoring  en- 
tirely the  greenback  theory  and  the  Ohio  idea,  as  it  was  called,  and  placed 
him  upon  a  sound-money  platform  of  gold  and  silver.    They  did  it  with  the 


knowleclgre.  of  tlip  fact  that  Mr.  Tilden  in  1875,  right  after  this  disrnssinn  and 
after  the  veto  V).y  the  President  of  the  greenbaek  hill,  had  delivered  a  mes- 
sage to  the  New  York  leg-islature  in  whieh   he  said: 

LEGAL  TENDEBS  DURING  THE  CIVIL  WAK,  GREATLY  INCREASED 
INFLATION  OF  PRICES. 

"There,  is  no  doubt  that  the  issue  of  lejjal  tenders  durinp:  <he  eivil  war 
hastened  and  greatly  inerea^sed  that  inlialion  of  prices  whieh  naturally  re- 
sulted from  the  increased  consninption  and  the  waste  resulting  from  mili- 
lary  operations,  and  from  the  (iiniinished  produ<tion  occasioned  by  so  large 
a  withdrawal  of  wf)rkers  from  their  onlinary  industries.  It  is  the  nature 
of  credit  to  be  voluntary;  it  is  founded  on  contiden('e.  Credit  on  compul- 
sion is  a  solecism.  Therefore  a  forced  loan  of  capital  from  all  existing  pri- 
vate creditors  can  not  but  be  costly. 

"It  was  made  in  this  instance  on  a  security  which  bore  no  interest,  and 
interest  on  which  could  only  be  represented  in  dis(^ount  from  its  par  value. 
It  gave  to  the  lender  an  agreement  to  pay  which,  being  instantly  dtie  on 
(hmiand,  started  in  its  career  a  broken  and  dishonored  promise.  Every  suc- 
cessive holder  was  left  to  conjecture  when  it  would  be  redeemed  by  the 
issuer,  how  far  it  might  be  absorbed  in  the  Treasury  receipts,  whether  it 
could  still  be  paid  out  to  some  private  creditor,  and  at  what  loss  it  could  be 
passed  away  in  new  purchases  on  a  market  advancing  rapidly  and  irregu- 
larly. P>erybody  was  advised  that  the  Federal  Government,  unwisely  dis- 
trusting the  intelligence  and  patriotism  of  the  people,  shrank  from  exer- 
cising its  borrowing  power,  supplemented  by  its  taxing  power,  and  instead 
of  resorting  at  once  to  the  whole  capital  of  the  country  capable  of  being 
loaned,  which  forms  a  vast  fund,  perhai>s  thirty  or  forty  times  as  large  as 
the  then  existing  currency,  it  chose  to  begin  by  debasing  that  comparatively 
insignificant  part  of  circulating  credits,  creating  fictitious  jirices  for  the 
commodities  and  services  for  which  it  was  next  to  exchange  its  bonds,  in 
an  exjienditure  ten  times  as  large  as  the  whole  amount  of  the  legal  tenders 
it  ventured  to  put  afloat. 

"No  man  could  know  how  often  or  how  much  of  legal  tenders  might  be 
issued  under  possible  exigencies  of  the  future.  M  could  not  be  wholly  for- 
gotten that  such  issues,  made  by  our  ancestors  to  sustain  the  victorious  war 
for  national  independence,  were  never  redeemed,  while  the  public  loans 
made  for  the  same  purposes  were  all  paid.  It  was  remembered  that  history 
affords  other  warning  examples  to  the  same  effect.  These  elements  of  dis- 
trust were  needlessly  invoked.  But  the  system  stopped  short  of  the  logical 
completeness  of  the  expedients  of  the  French  convention  in  1793.  While  it 
compelled  the  existing  private  creditor,  or  anybody  who  should  grant  a  new 
credit,  to  accept  payment  in  legal  tenders,  it  did  not  assume  to  regulate  the 
prices  of  commodities.  The  seller,  therefore,  gradually  learned  to  represent 
the  depreciation  of  the  currency  in  the  price  of  the  article  he  exchanged  for 
it.  As  compared  with  gold,  the  currency,  during  all  the  last  year  of  the  war, 
was  depreciated  to  between  40  and  50  cents  on  the  dollar,  touching  at  its 
lowest  point  35  cents  on  the  dollar. 

TESTIMONY  OF  THE  GREATEST  LEADER  OF  HIS  PARTY. 

"Governments  in  times  of  public  danger  can  not  be  expected  always  to 
adhere  to  the  maxims  of  econoniical  science;  the  few  who  would  firmly  trust 
to  the  wisest  policy  will  oft.en.be  overborne  by  the  advocates  of  popular  ex- 
pedii.'uts,  dictated  by  the  general  alarin.  If  the  Federal  Government  had 
jiiiid  out  Treasury  notes,  not  made  a  legal  tender,  in  its  own  transactions 
whenever  it  was  convenient,  and  redeemed  them  by  the  proceeds  of  loans 
and  taxes  on  their  presentation  at  a  central  point  of  connneree,  and  mean- 
while had   borrowed  at  the  market  i-ates  for  its   bonus,  secured   by   amule 


8 

sinking  funds  founded  on  taxation,  and  had  supplemented  such  loans  by  all 
necessary  taxes,  the  sacrifice  would  not  liave  been  half  that  required  by  the 
false  system  adopted,  perhaps  the  cost  of  the  war  would  not  have  been  half 
what  it  l)ecame." 

There,  Senators,  is  the  testimony  of  a  man  who  was  the  greatest  leader 
of  his  party  in  my  time.  It  was  his  wisdom,  his  statesmanship,  his  courage, 
his  control  of  men,  his  influence  with  capital  that  enabled  us  to  have  a 
reunited  party  in  either  Hall  of  Congress.  Will  you  now,  when  his  grave 
is  still  green,  go  back  and  repeat  the  folly  of  1873,  when  there  is  no  neces- 
sity whatever  for  such  an  experiment  ? 

"A  GBEAT  WAB  CANNOT  BE  CABBIED  ON  BY  PIECES  OF  PAPEB." 

Mr.  President,  I  dislike  to  go  outside  of  my  party  for  authorities  against 
the  issuing  of  greenbacks,  but  there  is  one,  an  honored  member  of  this 
Cliamber,  one  who  now,  as  I  understand,  makes  the  majority  of  the  com- 
mittee who  report  in  favor  of  the  issuance  of  $150,000,000  of  greenbacks, 
whom  I  will  quote.  I  mean  the  Senator  from  Nevada  [Mr.  Jones].  Me  has 
a  perfect  right  to  change  his  oi^inion.  We  all  do  that,  but  he  uttered  truths 
upon  this  floor  in  1874.  No  matter  why  he  has  changed  his  opinion  since. 
No  man  has  ever  answered  and  no  man,  in  my  judgment,  can  answer  the 
truths  he  then  enunciated.  I  will  let  him  speak  for  himself.  In  this  de- 
bate, when  it  was  proposed  to  increase  the  greenback  circulation  only 
$18,000,000,  the  Senator  from  Nevada,  speaking  of  the  action  of  Congress  in 
1862  and  1863,  when  they  authorized  the  issue  of  greenbacks,  legal-tender 
notes,  said: 

"Ignoring  the  history  of  other  nations,  taking  no  warning  from  the 
wrecks  of  financial  systems  strewn  along  tlieir  pathway,  the  first  tiling  wc 
did  was  to  make  irredeejnable  paper  a  legal  tender,  and  thereby  almost  im- 
mediately advance  the  price  of  everything  100  per  cent.  Having  thus  made 
everything  we  were  compelled  to  buy  double  its  former  price,  we  then  en- 
tered upon  the  negotiation  of  loans  and  a  rigorous  system  of  taxation  to 
raise  money  with  which  to  buy.  This  we  should  have  done  in  the  start,  and 
what  we  could  have  done.  But  we  first  thoroughly  demoralized  the  whole 
country  and  all  its  industries,  we  plundered  the  creditors  and  allowed  the 
debtors  to  discharge  their  obligations  by  paying  from  30  to  50  per  cent,  less 
than  they  owed,  and  then  we  started  to  raise  money  for  putting  down  the 
rebellion  in  the  only  way  we  should  have  done  in  the  commencement.  We 
resorted  at  the  outset  to  measures  condemned  by  financiers  everywhere.  To 
that  wrhich  I  would  only  have  been  willing  to  do  at  the  last  extremity. 
*  *  *  A  GREAT  WAll  CANNOT  BE  CAllKIED  ON  BY  PIECES  OE 
PAPEE  PAYABLE  AT  CONVENIENCE  AND  BEAltlNG  NO  INTEREST." 

I  commend  that  sentiment  to  every  Senator  on  this  floor.  It  is  a  truth 
that  will  last  for  all  time. 

"This  paper  currency,  instead  of  adding  strength  to  the  imperiled  coun- 
try, was  a  source  of  weakness.  Its  issuance  was  an  impeachment  of  the 
patriotism  of  the  nation  and  an  underrating  of  the  resources  of  the  country. 
It  was  a  cheat  upon  the  pcoi^le  in  teaching  them  the  pernicious  idea  that  in 
carrying  on  a  gi*eat  civil  war  economy  and  industry  were  not  necessary; 
that  i^roduetion  and  destruction  were  convertible  t-erms,  and  that  the  activity 
of  the  printing  press  in  the  production  of  paper  money  would  amply  com- 
pensate for  the  activity  of  armies  in  the  destruction  of  wealth." 

SUSTENANCE  OE  THE  GOVEBNMENT  WHEN  FACING  A  FOBEIGN 

FOE. 

'     Said  he,  in  reply  to  Mr.  Morton,  whether  he  regarded  the  greenback  as 
a  curse: 


9 

"T  do,  niost  vincloiibtetlly.  riiid  T  further  believe  that  it  is  the  duty  of  men 
to  lace  that  question." 

Those  declarations  were  true  when  he  uttered  them,  and  they  are  true 
to-day.  In  my  judg-ment,  the  results  of  the  legislation  of  1802  to  18fi5  will 
follow  this  measure  if  you  enact  it.  You  may  impair  the  eredit  of  the  Gov- 
ernment by  this  act.  No  Senator  desires  to  do  that,  I  know,  but  I  apjieal  to 
all  to  stand  by  the  uniform  action  of  governments  heretofore  and  supj)ly 
the  monej^  in  the  only  way  in  which  history  shows  it  can  be  supplied  with- 
out jeopardy. 

As  I  said  at  the  outset,  I  am  aware  of  the  fact  that  there  are  differences 
(.11  the  tax  provisions  of  this  bill.  They  are  matters  of  individual  opinion, 
of  honest  judg-ment.  If  I  wanted  to  treat  it  alone  from  a  i)olitical  stand- 
|joint  and  gain  advantage  for  my  partj',  I  would  support  the  measure  as  I 
have  indicated  that  I  will  support  it. 

I  believe  that  if  any  advantage  politically  could  come,  it  would  come 
because  there  hnd  been  on  my  part  a  perfect  sustenance  of  the  Government 
wheu  it  was  facing  a  foreign  foe.  The  benefit  would  come  because  I  have 
adhered  to  the  doctrines  of  the  party  to  which  I  belong,  it  would  come 
because  I  have  considered  nothing  but  gold  and  silver  the  money  of  the 
Constitution.  It  would  come  because  I  have  followed  every  great  leader 
from  Jackson  down  to  Buchanan  in  maintaining  the  integrity  of  the  Gov- 
ernment and  of  its  currency,  so  that  it  could  be  used  to  pay  our  soldiers  at 
home  and  the  sailors  and  soldiers  who  are  now  fighting  and  bleeding  and 
dying  for  us  in  a  foreign  land. 


DEMOCEATIC  IDEA  ON  GREENBACKS  IN  JANUAEY,  1895. 

[From  the  speech  of  Senator  Wm.  Lindsay,  of  Kentucky,  May  24,  1898. J 
Mr.  RAWLINS.    I  do  not  understand,  or  if  I  do  I  hope  the  Senator  will 
make  it  clear,  that  the  Senator  contends  that  we  are  here  in  our  legislative 
j)olicy  to  conform  to  the  declaration  of  a  political  platform,  especially  of 
the  Kepublican  party,  which  has  not  been  embodied  into  law. 

Mr.  LINDSAY.  I  do  say  that  if  we  do  not  legislate  in  view  of  condi- 
tions which  we  know  to  exist,  then  we  do  not  leg-islate  wisely  or  intelli- 
gently.   That  is  my  answer  to  the  question. 

But  my  friend  need  not  be  uneasy  about  the  redemi)tion  of  these  green- 
backs in  gold.  The  amendments  rejiorted  by  the  majority  of  the  Committee 
on  Finance  do  not  provide  for  the  repeal  of  the  act  of  1875.  They  leave  that 
net  in  full  force,  and  while  the  majority  of  the  committee  object  to  issuing 
bonds  to  raise  money  to  pay  the  exixmses  of  the  war,  preferring  to  issue 
f^reenbacks  payable  on  demand,  and  which  this  Administration  is  pledged 
to  pay  in  gold,  they  leave  the  act  of  1875  in  full  force,  so  that  when  a  raid 
may  be  made  upon  the  Treasury,  if  the  raid  shall  be  made,  with  the  addi- 
tional $150,000,000  of  greenbacks,  this  Administration  can  keep  its  pledge,  as 
the  last  Administration  maintained  the  gold  standard,  by  selling  bonds  more 
objectionable  in  their  form  and  conditions  than  the  bonds  provided  to  be 
sold  under  the  bill  as  it  came  from  the  House,  and  especially  under  the 
report  of  the  minority  of  the  Fiuance  Committee. 


10 

So  we  are  in  this  attitude:  It  is  a  question  whether  we  shall  sell  bonds 
to  raise  money  to  pay  the  expense  of  the  war  or  whether  we  shall  increase 
the  volume  of  greenb.ieks  and  force  the  Government  to  sell  bonds  to  put 
g-old  in  the  Treasury  to  keep  the  greenbacks  at  par  M'ith  g'old,  when  the  gold 
speculators  choose  to  make  a  raid  upon  the  Treasury,  after  we  have  in- 
creased their  facilities  25  per  cent,  by  the  bill  you  propose  to  enact  into  law. 

NOT  A  QUESTION  OF  BONDS. 

Mr.  Sl'OONER.     That  is  the  object  of  it. 

Mr.  TiiNDSAY.  It  is  not  a  question  of  bonds.  In  either  end  of  fhr  line 
we  have  bonds.  It  is  a  question  whether  we  will  sell  bonds  as  provided 
for  by  the  minority'  report  of  the  Finance  Committee  or  whether  we  will 
sell  bonds  ujider  the  act  of  1875,  and  everybodj'^  knows  this  to  be  the  case. 
There  will  probably  be  no  raid  upon  the  Treasury,  I  hear  it  ijitimated. 
When  did  we  g-et  this  sudden  confidence  in  the  moderation  of  the  gold  spec- 
ulators and  the  Treasury  raiders?  What  has  happened  in  the  last  tw^o 
years  tb  make  us  believe  that  when  those  people  can  make  money  by  ex- 
porting gold  they  ^vill  not  raid  the  Treasury  with  the  greenbacks  now  out- 
st-anding.  and  raid  it  the  more  successfully  with  the  greenbacks  which  this 
bill  provides  shall  be  put  into  circulation? 

My  friend  from  Texas  [Mr.  Chilton]  two  jears  ago,  in  di.^cussing-  this 
question,  did  not  give  his  unqualified  approval  to  legal-tender  money.  Stat- 
ing his  objections,  or  stating  points  that  did  not  meet  his  apjirobation,  he 
said: 

"One  of  these  is  found  in  that  part  of  section  4  which  compels  the  re- 
issue of  greenbacks  whenever  redemption  takes  place.  For  myself  I  do  not 
believe  we  shall  achieve  the  restoration  of  orderly  finance  until  the  present 
system  of  reissuing  demand  notes  of  the  Government  is  abandoned;  and 
\\  henever  a  fair  and  conciliatory  plan  looking  to  that  end  is  i)i'esented  to 
t!>e  Senate,  I  expect  to  vote  for  it." 

With  that  sentiment  I  am  in  hearty  accord. 

The  point  I  make  is  this:  We  can  not  have  at  this  time  the  free  and 
unlimited  coinage  of  silver.  We  can  not  and  we  do  not  propose  to  put  silver 
dollars  in  the  reserve  fund  to  redeem  greenbacks.  Now,  then,  if  it  would 
be  bad  policy,  after  we  had  the  right  to  redeem  the  legal-tender  notes  with 
both  gold  and  silver,  to  reissue  them,  I  submit,  is  it  not  worse  policy  to  re- 
issue them  and  keep  them  outstanding  as  demands  against  the  Treasury 
when  we  have  only  one  kind  of  coin  in  which  w^e  can  redeem  them?    *    *    * 

Mr.  BACON.  I  fully  agree  with  the  Senator.  If  we  could  have  all 
coined  money,  of  course  I  should  be  opposed  to  anj'^  paper  money;  but  as  the 
barrier  has  been  put  up  and  you  say  we  shall  not  have  coined  money,  but 
that  the  great  majority  of  our  currency  shall  be  paper,  then  the  best  obliga- 
tion is  the  obligation  of  the  Government. 

CREENBACKS  FOB,  THE  PURPOSE  OF  TAKING  THE  GOLD  OUT  OF 

THE  TREASURY. 

Mr.  LINDSAY.  Now,  let  us  see  about  that  best  obligation.  Two  years 
ago  this  matter  was  under  discussion.  I  believe  my  friend  here  [Mr.  Aixen] 
was  responsible  for  it,    A  distinguished  member  of  the  Finance  Committee, 


11 

the  Senator  from  Arkansas  [Mr.  Jones],  had  occasion  to  comment  upon  this 
kind  of  money.  I  think  my  friend  from  Nebraska  [Mr.  Allen]  had  in- 
dulged in  some  statement  to  the  effect  that  the  greenbacks  were  ideal 
money,  and  the  best  we  ever  had. 

Mr.  ALLEN.     I  will  say  it  now. 

Mr.  LINDSAY.     The  Senator  from  Arkansas  said  then: 

"The  truth  is  that  the  silver  certificates  are  to-day  performing-  fhe  office 
of  tlie  paper  money  of  this  country.  The  greenbacks  are  not  performing 
it.  On  tlie  contrary,  they  are  held  by  the  banks  for  the  purpose  of  taking 
tlio  gold  out  of  the  Treasury  whenever  they  want  it,  whenever  they  choo.se 
to  increase  11)eir  holdings.     In  the  last  sixty  days — 

1   think  this  was  January,  1895 — 
as  I  have  just  stated,  there  has  been  more  than  $.)0,000,Ono  in  gold  so  drawn 
out  of  the  Treasury,  and  of  that  $:)0,00(),000  only  $l5,0(»0,on()  was  drawn  out 
lor  export.     The  other  $;i.'j, 000,000  was  drawn  out  to  be  hoarded,  to  be  held 
in  banks;  and  this  will  continue — 

Now,  how  long? — 
and  this  will  continue  as  long  as  we  allow  this  convenient  means  of  deplet- 
ing the  Treasury  to  remain  in  their  hands — 

Now,  we  have  iiermitted  it  to  remain  in  their  hands  until  to-day,  and 
the  proposition  now  is  to  increase  their  facilities  25  per  cent,  over  the 
facilities  Ihey  held  at  the  time  these  statements  were  made — 

■'Whenever  they  choose  to  force  a  bond  sale  they  can  do  it  by  drawing 
out  the  gold  to  the  limit  which  the  President  considers  dangerous,  and 
after  the  bonds  are  bought  the  gold  paid  for  them  can  be  immediately  drawn 
out  of  the  Treasury  to  be  hoarded  in  the  banks,  as  stated  by  the  President, 
and  ^\e  are  no  nearer  relief  after  it  has  been  repeated  a  dozen  times,  and 
after  $100,000,000  or  $200,000,000  or  $300,000,000  of  bonds  have  been  issued 
tlian  we  were  when  we  began." 

That  was  the  Democratic  idea  of  greenbacks  in  January,  1895;  that  they 
(lid  not  answer  the  purposes  of  money;  that  the3'  were  held  by  the  banks 
and  by  gold  speculators,  and  that  the  banks  and  speculators  raided  the 
Treasury  with  them  whenever  they  cotild  make  profit  by  raiding  the  Treas- 
ury, and  thereby  compelled  the  sale  of  bonds  tinder  the  act  of  1875.  This 
bill  proposes  to  give  them  $150,000,000  of  demand  notes  in  addition  to  what 
they  held  in  1895;  it  stands  by  the  gold  standard,  as  this  Administration  is 
pledged  to  stand;  it  leaves  the  act  of  1875  in  force,  so  that  the  excellent 
gentlemen  who  make  monej'  by  raiding  the  Treasury  can  raid  it  25  per  cent 
more  successfully  than  they  could  when  the  Senator  from  Arkansas  exposed 
conditions  which  no  man  then  disputed  and  no  man  can  now  dispute. 

But  we  do  know  this  much:  If  you  put  these  greenbacks  out,  they  will 
be  redeemed  in  gold,  and  you  do  know  when  they  do  redeem  them  they  will 
again  issue  them,  and  again  redeem  them  in  gold;  and  you  do  know  that 
if  it  is  necessary  to  get  the  gold,  they  will  sell  bonds  again  under  the  act 
of  1875  to  get  it. 

A  PROPOSITION  BY  THE  SENATOR  FROM  KANSAS. 

In  1895  a  bill  came  over  from  the  Republican  Hotise  of  Representatives 
proposing  to  sell  $200,000,000  of  bonds,  very  much  like  the  $:i00,000,000  of 
bonds  which  are  jjroposed.to  be  sold  by  the  minority  amendment  of  the 
Finance  Committee.     The  bill   went  to   the   Finance   Committee,   ami    iiia!. 


12 

committee  reported  back  a  subhtitvite  in'  the  nature  of  a  bill  for  the  free  and 
nriinuted  coinagfe  of  silver.  ^Vhen  that  substitute  came  up  for  discussion, 
a  good  deal  was  said  by  the  Senator  from  Nevada,  doubtless,  but  I  do  not 
remember  what  it  was.  The  arg-ument  was  made  that  if  we  should  go  to 
free  silver,  then  gold  and  silver  would  come  to  a  parity.  My  oijiuion  was 
that  if  that  was  a  well-founded  belief — and  I  had  no  right  to  doubt  that  my 
silver  friends  thought  it  was — and  we  were  going  to  make  an  experiment, 
there  coiild  be  but  one  of  two  results.  Either  gold  and  silver  would  go  to  a 
parity,  or  else  this  country  would  go  to  a  silver  basis.  Therefore  I  w^as  of 
the  opinion  that  in  either  alternative  there  was  no  proprietj'  in  sellijig  bonds 
to  keep  up  a  redemption  fund. 

A  proposition  was  made  by  the  then  Senator  from  Kansas  [Mr.  PefEer] 
looking  to  that  view,  which  was  rejected.  Then  mx  distinguished  friend 
from  Nebraska  [Mr.  AIlen],  who  is  consistent  always,  whether  right  or 
wrong— he  claims  he  is  sometimes  right — offered  this  amendment  to  that 
substitute: 

'"Provided,  That  after  the  passage  of  this  act  the  Secretary  of  the  Treas- 
ury shall  be  deprived  of  the  power  to  issue  bonds  or  other  interest-bearing 
obiigntions  of  the  Government  unless  Congress  shall  first  declare  the  neces- 
sity therefor,  any  act  of  Congress  now  in  force  to  the  contrary  notwith- 
standing." 

So  that  with  this  amendment  the  substitute  would  have  provided  for 
the  fi'ee  and  unlimited  coiiiage  of  silver  at  the  ratio  of  16  to  1,  with  the 
provision  that  the  Secretary  of  the.  Treasury  should  have  no  power  to  sell 
bonds  except  by  express  act  of  Congress,  and  then  only  according  to  that 
act.  If  there  was  a  deep-seated,  undying  hostilitj'  to  the  sale  of  bonds,  an 
opposition  holding  that  bonds  should  not  even  be  sold  in  time  of  war,  it 
seems  to  me  that  was  the  time  for  the  opponents  of  such  a  policy  to  mani- 
fest their  oiJposition. 

DEMOCRATS  VOTED  IN  THE  NEGATIVE. 

The  5'^eas  and  nays  were  called  on  the  proposed  amendment,  and  it  re- 
ceive'd  21  votes.  It  was  defeated  by  .a  vote  of  54.  Now,  let  us  see  who  voted 
for  it.  The  following  Democrats  voted  for  the  axnendment:  Bacon,  Berry, 
Blanchard,  Call,  Hill,  Irby,  Lindsay,  Mills,  and  Roach.  Those  were  all  the 
antibond-selling  Democrats  who  were  then  on  this  side  of  this  Chamber. 

This  substitute  was  defeated,  and  I  find  among  those  who  did  not  theu 
regard  the  sale  of  bonds  as  an  unpardonable  sin,  even  in  time  of  peace,  and 
whp  were  willing  to  sell  bonds,  or  at  least  not  willing  to  take  away  from 
the  Secretary  of  the  Treasury  the  right  to  sell  bonds  to  buy  gold  to  redeem 
greenbacks,  for  that  was  the  only  statute  that  was  then  in  force,  the  follow- 
ing Democrats  voted  in  the  negative:  Bate,  Chilton,  Cockrell,  Daniel, 
Faulkner,  George,  Gibson,  Gorman,  Gray,  Harris,  Jones  of  Arkansas, 
J^fARTiN,  Mitchell  of  Wisconsin,  Morgan,  jMurphy,  Palmer,  Pasco,  Pugh, 
Tillman,  Vest,  Vilas,  Voorhees,  Walthall,  and  White. 

In  1895  three-fourths  of  the  Democrats  were  opposed  to  repealing  the 
act  of  1875  and  taking  away  from  the  President  the  right  to  sell  bonds  to 
buy  coin  to  redeem  greenbacks. 


13 

Mr.  TILLMAN,  If  I  understand  the  Senator,  he  contends  that  the  issue 
of  greenbacks  which  we  favor  would  entail  an  oblig'ation,  or  at  least  afford 
an  oj^portunity  to  the  Administration — 

Air.   LINDSAY.     That  is  better. 

Mr.  TILLMAN.     To  sell  bonds  for  gold? 

Mr.  LINDSAY.     Yes. 

BOKTDS  SOLD  FOB  MONEY  AS  GOOD  AS  GOLD. 

Mr.  TILLMAN.  His  substitute,  or  that  which  he  proposes  to  vote  for 
as  a  substitute,  is  to  allow  the  Administration  to  issue  bonds  to  carry  on 
the  war.  What  will  it  sell  those  bonds  for  when  it  sells  them?  Will  it  de- 
mand gold  for  them? 

Mr.  LINDSAY.  The  bonds  will  be  sold  for  money  as  good  as  gold,  ex- 
changeable for  gold,  and  that  money  will  be  used  to  i)ay  the  young  men 
we  are  send"  \g  to  Cuba  to  face  Spanish  bullets  and  the  yellow  fever. 


REPRESENTATIVE  AMOS  J.  OTJMMINGS  ON  THE  WAR 
REVENUE  BILL. 

(From  the  Congressional   Iiecord  of  May  3,   1898.) 

Mr.  CUMMfNGS.  Mr.  Speaker,  the  gentleman  from  Washington  for 
some  inscrutable  reason  has  seen  fit  to  embalm  me  in  the  honey  of  his  intel- 
lectiiality,  [Laughter.]  He  asks  above  which  party  does  patriotism  rise  in 
the  House.  It  rises,  ISIr.  Speaker,  above  both  parties.  As  a  war  Democrat,  I 
enlisted  in  the  war  for  the  Union,  not  because  it  was  Democratic  policy,  not 
because  it  was  Republican  policy,  but  because  the  country  was  in  danger, 
and  I  was  due.     [Great  applause.] 

I  am  due  to-day,  and  I  have  made  it  known  by  my  vote.  I  do  not  talk 
of  the  "meritoriousness"  or  "meretriciousness"  of  my  action.  The  words  aie 
not  synonymous.  They  are  in  no  way  allied  to  each  other.  And  although 
I  have  not  had  a  college  education,  as  the  gentleman  has  had,  I  do  know^ 
enough  to  know  not  to  use  such  words  in  the  same  sense.  [Laughter.]  I 
admire  the  gentleman  from  Washington.  His  raiment  is  exqtiisite  [great 
laughter];  his  hirsute  adornments  are  magnificent  [renewed  laughter];  even 
the  spats  on  his  shoes  are  effulgent.  [Great  laughter.]  They  all  bear  a  due 
relatiou  to  the  brilliancy  of  his  intellect  [renewed  laughter],  and  his  intel- 
lectuality is  beyond  comparison. 

BONDS   TO   RUN    THE   GOVERNMENT   IN    TIME    OF   WAR. 

I  say  that  the  true  spirit  of  Democracy  is  patriotism,  and  a  Democrat 
who  sneers  at  patriotism  does  not  deserve  the  name  of  Democrat.  The 
gentleman  voted,  without  talking,  for  the  $50,000,000  appropriation.  Why 
did  he  not  think  of  "contractors"  then?  Was  not  the  time  to  speak  before- 
hand, and  not  afterwards?  Why  is  it  that  he  is  already  accusing  men  in 
high  standing  of  corruption  when  the  war  has  hardly  begun? 


14 
Mr.  LEWIS  of  Washing-ton.     But  they  have.     [Laughter  and  applause.] 

Mr.  CUMMINGS.  Make  your  statements  clear,  produce  your  proof,  aud 
then  slander  your  (Government  if  you  must.  Do  not  do  it  under  suspicion. 
[Great  applause.] 

Now,  Mr.  Speaker,  I  did  believe,  when  I  voted  for  tlie  bill  proposing  to 
raise  revenue  to  carry  on  this  war,  and  the  Democratic  side  of  the  House 
almost  unanimously  voted  for  war,  that  I  was  doing  fully  as  patriotic  a 
thing  as  the  gentleman  did  when  he  voted  for  the  $50,000,000,  to  be  placed 
at  the  disposal  of  the  President  without  conditions.  1  BELIEVED  THAT 
IF  A  DEMOCRATIC  ADMINISTRATION  WAS  FORCED  TO  SELL  $300,- 
000,000  IN  BONDS  TO  RUN  THE  GOVERNMENT  IN  TIME  OF  FEACE, 
THAT  A  REPUBLICAN  ADMINISTIIATION  MIGHT  BE  ALLOWED  TO 
SELL  BONDS  ENOUGH  TO  RUN  THE  GOVERNMENT  IN  TIME  OF  WAR. 
[Great  applause  on  the  Republican  side.] 

ACTION    BY   A   PRESIDENT    INDEBTED    TO    THE    SOUTH   FOB   HIS 

NOMINATION. 

This  action  was  taken  by  a  President  who  was  indebted  to  the  South 
for  his  nomination.  You  who  came  from  the  South,  went  into  the  Demo- 
cratic national  convention  over  iive  years  ago,  and  rammed  Grover  Cleve- 
land down  the  throats  of  the  New  York  Democracy,  with  its  whole  delega- 
tion strenuously  pi'otcsting  against  it.  Y'ou  are  responsible  for  him,  not  we. 
[Applause.] 

Mr.  GAINES.    Do  you  say  that  we  are  responsible  for  Grover  Cleveland? 

Mr.  CUMMINGS.    I  say  so,  knowing  it  to  be  so. 

Mr.  JONES  of  Washington.     I  want  to  ask  the  gentleman 

Mr.  GAINES.  There  have  been  a  great  many  sins  charged  against  the 
South,  but  I  have  never  before  heard  it  said  that  Grover  Cleveland  came 
from  the  South. 

Mr.  CUMMINGS.  It  is  true.  I  challenge  the  record.  He  was  nominated 
and  elected  by  the  votes  of  the  South,  with  his  gold  letter  staring  you  in 
the  face.  You  forced  him  down  our  throats  against  our  unanimous  pro- 
test.    Den}'  it,  if  you  dare.     [Loud  applause.] 

A  POPULAR  LOAN  WILL   CEMENT  THE  PATRIOTISM   OF   THE 

PEOPLE. 

I  did  believe  that  if  it  was  necessary  to  sell  bonds  in  time  of  war,  we 
should  sell  them  in  sums  of  $25  and  $50  to  the  mechanics  and  farmers  and 
the  honest  producing  people  of  the  United  States  [applause],  and  not,  as 
was  done  under  the  Cleveland  Administration,  .sell  them  at  private  sale  to 
a  syndicate  that  within  two  months  netted  $8,000,000  for  simply  tiu-ning 
them  over  to  outside  parlies.     [Loud  applause.] 


15 

There  m;is  no  war  then,  and  tlie  safety  of  llie  nation  was  not  impeiMled. 
I  believe,  if  we  must  have  a  loan,  in  a  popular  loan.  I  advocated  a  popular 
loan  when  the  Cleveland  Administration  was  planting-  the  second  issue 
among-  the  syndicates.  A  popular  loan  will  cement  the  patriotism  of  the 
people  of  the  United  States,  and  the  people  will  never  overflow  with  gall, 
as  did  the  gentleman  this  afternoon,  in  aid  of  the  enemy.  I  am  on  record  as 
voting"  not  only  for  the  war,  but  as  voting'  for  supplies  for  the  war,  and 
with  that  record  I  am  content,  politics  or  no  politics.     [Ajjplause.] 

Mr.  Speaker,  I  reg-ret  that  1  have  not  1,000,000  six-syllable  adjectives  to 
J  hower  on  the  House.  Adjectives  are  adjectives,  and  votes  are  votes.  1 
confine  my  speech  to  plain  Ang^lo-Saxon.  I  am  an  Ang-lo-Saxon;  I  am  an 
American;  I  am  a  Democrat.  Patriotism  itself  is  Democracy.  [Loiid  ap- 
plause.] 

Mr.  CLAIvK  of  Missouri.  There  is  not  a  man  on  the  floor  of  the  House 
for  Avhom  I  have  a  more  tender  personal  affection  thaia  I  have  for  the 
gentleman  from  New  York,  Mr.  Amos  J.  Cummings 

Mr.  CUMMINGS.     And  the  feeling  is  reciprocated. 

Mr.  CLARK  of  Missouri  (continuing-).  And  he  knows  it,  and  I  know 
that  it  is  reciprocated.  But  I  say,  in  perfect  respect  for  him  and  in  thi' 
presence  of  all  of  these  witnesses,  that  he  has  made  the  most  outrageous 
speech  on  the  floor  of  the  House  to-day  that  ever,  in  my  jiidg-nient,  was 
delivered  in  this  body.     [Laughter  and  applause.] 

I  do  not  care  anything  about  his  assault  on  the  gentleman  from  Wash- 
ington [Mr.  Lewis].  That  is  not  "my  pie."  [Laughter.]  I  have  no  hand 
in  it.  [Laughter.]  But  when  he  commits  the  "unpardonable  sin"  of  putting 
into  this  discussion  the  statement  that  a  Democratic  Administration  issued 
$300,000,000  of  bonds  in  a  time  of  .peace  I  deny  his  right  to  be  the  spokes- 
man for  my  party,  at  least  on  that  subject. 

MISSOURI  VOTED  TO  NOMINATE  GROVER  CLEVELAND. 

Mr.  CUMMINGS.    Will  the  gentleman  allow  me  an  interruption? 

Mr,  CLARK  of  Missouri.     Certainly. 

Mr.  CUMMINGS.  I  will  state  for  the  gentleman's  benefit  that  the  dele- 
gation from  Missouri  voted  uiuminiously  to  nominate  Grover  Cleveland  in 
Chicago,  although  they  had  no  instructions.     [Laughter  and  applause.] 

WOULD   READ   OUT   OF   THE    DEMOCRATIC    PARTY   EVERY    MAN 
WHO  VOTED  FOR  THE  BILL. 

Mr.  CLARK  of  Missouri  (continuing).  If  it  were  not  for  my  personal 
affection  for  the  gentleman  from  New  York,  I  WOULD  INALKUI  KATE  A 
MOVEMENT  AMONG  THE  DEMOCRATS  IN  TIMS  AND  THE  OTHl>:i{ 
END  OF  THE  CAPITOL  TO  RKAD  OUT  OF  THE  DEMOCRATIC  PART'i' 
BY  NAME  EVERY  MAN  ON  THIS  FLOOR  WHO  VOTED  FOR  THE  BOND 
BILL  THE  OTHER  DAY.     [APPLAUSE  ON  THE  DEMOCRATIC  SIDE.] 


16 

THE  VOTE. 
(From  the  Congressional  Record,  April  29,  No.  104,  Vol.  31.) 

[Republii'fin-i  in  Homan,  Democrats  in /to^ici,  PopuIiBts  in  small  caps,  Fasionists  in  iJo^te  CAPS, 
Silvcriies  in  C'Al'a. — From  the  Official  List  of  Membtrs,  December  6, 1897.] 

YEAS— 181.— Acheson,  Adams,  Aldrich,  Alexander,  Arnold,  Babcock,  Baker,  Md. 
Rfirhani,  Baniey,  Barrows,  Bartholdt,  Beach,  Belden,  Belford,  Belknap,  Bennett,  Bing- 
ham, Bishop,  Booze,  Boutell,  111.;  Boutelle,  Me.,  Brewster,  Broderick,  Brorawell,  Brown, 
Browulow,  Bnuii.n,  Bull,  Burleigh,  Burton,  Butler,  Cannon,  Capron,  Chickering,  Clark, 
lowR,  Coiinell,  Cooper,  Wis.  Corliss,  Cousins,  Crump,  Crumpacker,  Cummings,  Curtis, 
Iowa,  Curtis,  Kans.  Dalzell,  Dauford,  Davidson,  Wis.  Davison,  Ky.  Dayton,  Diugleyj 
iHilliver,  Dorr,  Dovener,  Driggs,  Eddy,  Ellis,  Evans,  Faris,  Fenton,  Fischer,  Fitzgerald, 
Fletcher,  Foote,  Foss,  Fowler,  N.  J.,  Gardner,  Gibson,  Gillet,  N.  Y.,  Graff,  Griflin,  Gros- 
v'enor.  Grout,  Grow,  Hager,  Ffarailton,  Harmer,  Hawley,  Heatwole,  Hemcuway,  Hendeison, 
Henry,  Conn.,  Henry,  Ind.,  Hepburn,  Hicks,  Hilborn,  Hill,  Hitt,  Hooker,  Hopkins, 
Howe,  Howell,  Hull,  Jenkins,  Johnson,  Ind.,  Johnson,  N.  Dak.,  Joy,  Kerr,  Ketcham, 
Kirkpatrick,  Knox,  Kulp,  Lacey,  Landis,  Lawrence,  Littauer,  Loud,  Loudenslager,  Lover- 
ins;,  Low,  Lybrand,  McAleer,  McCall,  McCleary,  McClellan,  McDonald,  McEwan,  Mclntire, 
Mahon,  Marsh,  Mercer,  Mesick,  Miller,  Mills,  Minor,  Mitchell,  Moody,  Morris,  Mudd,  North- 
way,  Olmsted,  Otjen,  Overstreet,  Parker,  N.  J.,  Payne,  Pearce,  Mo.,  Pitney,  Powers,  Pugh, 
Ray,  Reeves,  Robbins,  Royse,  Russell,  Sauerhering,  Shannon,  Shattuc,  Sherman,  Showal- 
'er.  Smith,  111.,  Smith,  S.  W.,  Smith,  Wm.  Alden,  Southard,  Southwick,  Spalding,  S perry, 
-prague,  Steele,  Stevens,  Minn.,  Stewart,  N.  J.,  Stewart,  Wis.,  Stone,  C.  W^,  Stone,  W.  A., 
Strode,  Nebr.,  Sturt€vant,  Sulloway,  Tawney,  Taylor,  Ohio,  Tongue,  Updegraff,  Van 
Voorhis,  Wadsworth,  Walker.  JIass.,  Walker,  Va..  Wanger,  AVard,  Weaver,  Wheeler,  Ala., 
White,  111.,  Williams,  Pa.,  Wise,  Young. 

"SAYS— 131.— Adamson,  Bailey,  BAKER,  111.,  Ball,  Bankhead,  Barlow,  Bartlett, 
Bell,  Bcnner,  Pa.,  Benton,  Berry,  Bland,  Bodiae,  Botkin,  Bradley,  Brantley,  Bren- 
ner, Ohio,  Brcicer,  Broussard,  Brucker,  Brundidge,  Burke,  Ca)~mack,  Castle,  Clardy, 
Clark,  Mo.,  Clayton,  Cochran,  Mo.,  Cooney,  Cooper,  Tex.,  Cowherd,  Cox,  Duvey,  Davis, 
De  Armond,  De  Graffenreid,  De  Vries,  Dinsnufre,  Dockery,  Elliott,  FUzpat.rick,  Flem- 
ing, FowLEK,  N.  C,  Fox,  Gaines,  Greene,  Griffith,  Griggs,  GuNN,  Handy,  HARTMAN, 
Hay,  Henry,  Miss.,  Henry,  Tex.,  IIowakd,  Ala.,  Howard,  Ga.,  Hunter,  Jones,  Va., 
JONES,  Wash.,  Kellky,  King,  Kitchin,  Kleberg,  Knowlks,  Lamb,  Lanham,  Latimer, 
Lentz,  Lester,  Lewis,  Ga.,  LEWIS,  Wash.,  Linney,  Little,  Livingston,  Lloyd,  Love, 
McCOEMiCK,  McCulloch,  McDowell,  McMillin,  McRae,  3Iaddox,  Maguire,  Maetin, 
MAXWELL,  Meyer,  La.,  3Iicrs,  Ind.,  Moon,  Norton,  Ohio,  Norton,  S.  C,  Ogden, 
Osborne,  Otey,  Peters,  Pierce,  Tenn.,  Rhea,  Richardson,  Rtdgely,  Rixey,  Robb, 
P.ubertson,  La.,  Robinson,  Ind.,  Sayers,  Settle,  SHAFROTH,  SnuFOBD,  Simpson,  Sims, 
Sktnneb,  Slayden,  Smith,  Ky.,  Sparkmaii,  Slallings,  Stabk,  Stephens,  Tex  ,  Stokes, 
Steowd,  N.  C,  Sullivan,  Sulzer,  Suthkbland,  Swanson,  Talbert,  Taylor,  Ala.,  Thorp, 
Underwood,  Vandiver,  Vehslage,  Vincent,  Wheeler,  Ky.,  Wilson,  Zenwr. 


(No.  a) 


HAWAII 


*<  There  is  such  a  thing  as  an  American  Spirit.' 


Hon.  JOHN  T.  MORGAN,  of  Alabama 

Hon.  CHAS.  H.  GROSVENOR,  of  Ohio 

Capt.  MAHAN,  U.  S.  Navy 

General  SCHOPIELD,  U.  S.  A.,  Retired 

Admiral  DUPONT 

Pn  minent  Labor  Leaders 


Frcni   the  Congressional  Record 


HKiA£HII 


"I  WILL  NOT  BE  A  PARTY  TO  ANY  MISERABLE  POLITICAL  TRICX 
AND  INTRIGUE  LIKE  THAT." 

[From  the  Speech  of  Senator  Morgan,  (Dem.),  in  the  Senate  of  the  United  States,  June  25, 189 -.j 

Mr.  MORGAN.  I  should  like  to  know  whether  these  fine,  silken,  glossy 
arguments  about  the  Constitution  ol  the  United  States  and  about  the  riglii 
of  the  President  of  the  United  States  to  coal  his  ships  and  stop  and 
refresh  his  troops  in  Hawaii  and  in  Cuba  are  to  stand  for  a  moment  in 
the  presence  of  the  events  that  are  encumbering  this  people  and  causing 
them  to  lay  their  lives  down  at  our  command,  and  whether  we  can  afford 
to  stand  here  and  qiubble  about  little  points  like  this,  and  obstruct  the 
war,  prevent  it,  and  put  to  peril  the  troops  that  we  have  sent  out  upon  the 
high  seas.  I  should  like  to  know  it.  WE  HAVE  GOT  TO  FACE  IT,  AND 
1  AM  DELIGHTED  TO  FIND  THERE  IS  A  MAJORITY  HERE  WILLING 
TO  DO  IT.  AND  I  AM  DELIGHTED  TO  ACT  WITH  THEM,  THOUGH 
rilKY  ARE  NOT  MY  FRIENDS  POLITICALLY.  I  WILL  STAND  BY 
TllKM  THROUGH  THICK  AND  THIN  FOR  MY  COUNTRY  AND  ITS  FLAG. 

Mr.  President,  we  shall  presently  be  having  wounded  men  and  men 
sick  with  all  manner  of  tropical  diseases  coming  back  from  the  Philippines. 
Are  they  there  unlawfully?  Are  they  there  withouj  our  command?  Are 
they  there  in  some  unholy  exploit  from  which  we  are  not  willing  to  re- 
lieve them,  or  have  they,  while  they  are  there,  and  those  who  go  to  re- 
enforce  them,  been  marking  upon  the  records  of  history  the  highest  trib- 
ute to  American  power  and  American  charact-er  that  has  ever  beien  drawn 
by  the  hand  of  man  with  the  sword?  These  men  will  be  coming  back 
presently,  many  of  them,  and  Senators  are  here  on  this  floor  filibustering 
to  prevent  those  men  from  having  a  friendly  welcome  and  a  landing  under 
their  own  flag  and  their  own  country  at  Hawaii  as  they  come  back,  say- 
ing, "We  will  make  you  sail  across  the  Pacific  or  else  die  while  you  are 
trying."     That  is  the  situation  we  are  in. 

"I  WILL  NOT  BE  A  PARTY  TO  ANY  MISERABLE  POLITICAL  TRICK 

AND  INTIIIGUE." 

No,  sir;  I  reimdiate  it  from  my  soul.  I  repudiate  it;  I  will  have  none  ol 
it;  I  WILL  NOT  BE  A  PARTY  TO  ANY  MISERABLE  POLITICAL  TRICK 
AND  INTRIGUE  LIKE  THAT.  THERE  ARE  MEN  ON  THIS  FLOOR. 
PLENTY^  OF  THEM  AND  THEY  HAVE  ALREADY  STARTED  THE 
MOVEMENT  TO  DEFER  THE  QUESTION  OF  THE  ANNEXATION  OF 
HAWAII  UNTIL  NEXT  WINTER.  When  the  Senate  of  the  United  States 
makes  that  vote,  what  do  we  do  with  the  President  of  the  United  States 
but  to  express  our  disapprobation  t^a.t  he  in  the  meantime  should  permit 
one  of  his  soldiers  to  Isjid  upon  those  islands  for  refreshment? 

(1) 


Mr.  ALLEN.  I  should  like  to  ask  the  Senator  a  question.  He  has 
spoken  about  filibustering,  and  I  regret  the  disposition  on  the  other  side 
to  do  that. 

Mr.  MORGAN.  THE  FACETIOUS  REMARK  OF  THE  SENATOR  FROM 
NEBRASKA  CHARGING  THE  OTHER  SIDE  \AT[TH  FILIBUSTERLXG 
DOES  NOT  DO  JUSTICE  TO  THE  RECORD.  IT  DOES  NOT  DO  JUSTICl': 
TO  THE  TRUTH.  IT  DOES  NOT  DO  JUSTICE  TO  THE  SOLEMNITY  OV 
THIS  OCCASION.  THE  SENATOR  FROM  NEBRASKA  HAS  HIMSELF  SET 
UP  A  REGULAR  FILIBUSTER  AS  WE  CALL  IT  HERE— I  DO  NOT  KNOW 
ANY  BETTER  NAME  FOR  IT— AND  HE  HAS  BEEN  CONTINUING  IT  FOR 
THE  LAST  HOUR. 

"FILIBUSTERING     FOB     THE     PURPOSE     OF     PREVENTING     A 
MAJORITY  OF  THIS  BODY  FROM  VOTING." 

Mr.  ALLEN.  The  accusation  is  very  serious,  and  I  hope  the  Senator 
will  permit  me  to  say  a  word.  I  do  not  yet  know  whether  I  am  going  to 
vote  with  the  Senator  from  Alabama  or  not.  I  do  not  know  what  policy 
ought  to  be  pursued  respecting  these  islands.  It  is  a  grave  question.  If 
the  Senator  will  permit  me  to  occupy  his  time  just  a  moment,  here  it  is 
5  o'clock  Saturday  night,  and  we  are  to  meet  at  11  o'clock  ^londay  morn- 
ing. Now,  because  I  protest  against  going  on  with  this  debate  to-night, 
when  we  can  accomplish  nothing,  does  the  Senator  feel  that  I  ought  to  be 
characterized  as  a  filibuster?    I  leave  that  to  his  sense  of  propriety. 

Mr.  MORGAN.  I  have  not  characterized  the  Senator  as  a  filibuster. 
I  merely  characterized  what  has  been  done  here  as  falling  within  that 
category,  the  disagreeable  things  that  I  call  FILIBUSTERING,  FOR  THE 
PURPOSE  OF  PREVENTING  A  MAJORITY  OF  THIS  BODY  FROM  VOT- 
ING. 

NOW,  SIR,  PERSONAL  CONVENIENCE  IS  SPOKEN  OF,  AN  AFTER- 
NOON OF  SATURDAY;  "IT  IS  HOT;"  "SENATORS  ARE  FATIGUED." 
DO  YOU  SUPPOSE  THAT  GENERAL  SHAFTER'S  TROOPS,  WHO  EXPECT 
TO  FIGHT  YOUR  BATTLE  TO-MORROW,  SUNDAY,  AS  IT  IS  OP  GREAT 
MAGNITUDE,  ARE  SAYING  TO  THEIR  COMMANDING  OFFICERS  THIS 
AFTERNOON,  "IT  IS  PERSONALLY  INCONVENIENT  FOR  US  <T0  MOVE 
TO-MORROW  OR  THIS  EVENING;  WE  PREFER  TO  CONSULT  OUR 
EASE;    WE  DO  NOT  WANT   TO   GO   INTO   THE   FIGHT   TO-NIGHT?" 

"POLITICAL  INTRIGUES  FOR  NEXT  NOVEMBER  ELECTIONS." 
Mr.  President,  who  are  we  representing  here?  MEN  WHO  ARE  SHED- 
DING THEIR  BLOOD  FOR  US  UPON  THE  FIELD  OF  BATTLE,  AND 
WE  ARE  TALKING  ABOUT  PERSONAL  INCONVENIENCE!  We  are 
spoiled  to  death,  Mr.  President,  by  our  prosperity.  If  this  Senate  had  to 
march  out  and  shoulder  arms  for  the  defense  of  this  capital,  and  stand 
guard  to-night  and  for  the  next  week,  it  would  do  us  all  good.  WE 
WOULD  THEN  LEARN  WHAT  IT  WAS  TO  STAND  FOR  OUR  COUNTRY, 
NOT  TO  SLEEP  ON  OUR  POSTS,  AND  HAVE  OUR  LITTLE  POLITICAL 
INTRIGUES  FOR  THE  NEXT  NOVEMBER  ELECTIONS  AND  TALK 
ABOUT  PERSONAL  INCONVENIENCE 


Sir,  when  the  pending  joint  resolution  has  been  debated  to  the  full 
extent  of  the  wishes  of  the  g-entlemen  who  oi)pose  it,  it  oug-ht  to  l>e 
allowed  to  be  voted  upon.  That  is  all  of  it.  THERE  OUGHT  NO  T  TO 
BE  AN  INTERPOSITION  HERE  OF  TACTICS  OF  THE  SORT  EXHIBITED 
THIS  EVENING  FOR  THE  PURPOSE  OF  THROWING  ENORMOUS  BUR- 
DENS UPON  THE  PRESIDENT  OF  THE  UNITED  STATES.  WHY,  SIR. 
IF  THESE  MEN  FORCE  THE  PRESIDENT  OF  THE  UNITED  STATES 
TO  RAISE  OUR  FLAG  IN  HAWAII  AND  TO  TxVKE  CARE  OF  IT  TIIliUK 
L\  ORDER  TO  SHELTER  OUR  WOUNDED  AND  SICK  PEOPLE  WHO 
AKE  COMING  BACK  FROM  MANILA,  AND  THE  COAL,  AND  THE  SUI' 
PLIES,  AND  THE  WATER  NECESSARY  FOR  THE  MAINTENANCE  OF 
THE  CREWS  ON  OUR  SHIPS,  THE  VERY  MEN  WHO  FORCE  HIM  INTO 
THAT  CATEGORY  WILL  BE  FOUND  HERE  RISING  ON  THEIR  FEET 
AND  MOVING  TO  IMPEACH  HIM  HECAUSE  HE  VIOLATED  SOME  POS- 
SIBLE SHADOW  OF  THEIR  INTEXiPRETATION  OF  THE  CONSTITUTION 
OF  THE  UNITED  STATES. 

"THERE  IS  SUCH  A  THING  AS  AN  AMERICAN  SPIRIT." 
I  AM  GLAD,  SIR,  THAT  I  HAVE  GOT  THE  OPPORTUNITY  JUST  AT 
THIS  MOMENT  TO  ANTICIPATE  THAT  MISERABLE  SCHEME  AND 
LAY  IT  BARE  TO  THE  BONE.  You  will  not  be  heard,  gentlemen,  here- 
after to  accuse  the  President  of  the  United  States  of  violating  the  con- 
stitutional rights  and  powers  of  the  Chief  Executive  when  h©  and  his  friends 
and  his  countrymen,  whether  of  his  political  party  or  not,  turn  to  you 
and  say:  "YOU  FORCED  HIM  TO  THAT  SITUATION  BY  CONDUCT  ON 
YOUR  PART  THAT  MADE  IT.  ABSOLUTELY  INDISPENSABLE  IN  THE 
NAME  OF  CHRISTIANITY  AND  HUMANITY  THAT  HE  SHOULD  DO 
SUCH  A  THING." 

When  you  return  to  your  constituents,  gentlemen,  and  meet  the  fathers 
of  the  sons  who  have  gone  to  Manila,  and  tell  them  that  you  obstructed 
by  filibustering  tactics  the  passage  of  a  law  that  would  make  it  legal  for  them 
to  stop  in  Hawaii  on  their  return  with  their  wounds  or  their  sickness  and 
tind  shelter  in  the  bosom  of  that  hospitable  and  splendid  people,  that 
father  will  spurn  you  as  not  being  his  representative  or  the  representative 
of  the  true  American   spirit. 

There  is  such  a  thing,  thank  God,  as  an  American  spirit.  It  is  hover- 
ing over  the  Senate  now.  It  keeps  Senators  in  their  seats  who  have  strong 
reasons  for  being  absent.  IT  HAS  NOT  BEEN  STRONG  ENOUGH  TO 
INVITE  ALL  THE  ABSENTEES  TO  BE  HERE;  BUT  THEIR  NAMES 
OUGHT  TO  BE  PUT  ON  RECORD  TO  SEE  WHO  IT  IS  WHO  IS  NOT 
WILLING  TO  STAY  HERE  AND  SERVE  HIS  COUNTPA'  WHILE  THE 
MEN  IN  MANILA  AND  THE  MEN  IN  SANTIAGO  DE  CUBA  ARE  FIGHT- 
ING UNDER  OUR  FLAG  FOR  THEIR  COUNTRY.  THEY  OUGHT  TO 
BE  PUT  ON  THE  RECORD  TO  SHOW  \MIO  THEY  ARE  AND  WHY  THEY 
ARE  NOT  PRESENT  HERE  PERFORMING  THIS  BEAUTIFUL,  SPLENDID, 
EASY,  NICE,  COMFORTABLE,  AND  DISTINGUISHED  DUTY  OF  VOTING 
TO  THE  PEOPLE  WHO  ARE  IN  THE  ARMY  THE  ALLOWANCE  OF  A 
HOSPITABLE  RECEPTION    IN  THE   ISLAND   OF   IlAW.Ul. 


"A  FITTING   RESPONSE   TO   THAT   SPLENDID   SPIBIT   OE   CUB 

FATHERS." 

There  is  such  a  thing,  Mr.  President,  as  an  American  gpirit,  and  I 
rejoice  in  it.  It  is  my  privilege  to  do  so,  and  I  will  not  be  found  doing 
anything  at  all  that  in  the  slightest  degree  obstructs  the  full  flow  of  that 
glorious  and  magnificent  spirit  which  already  has  won  for  us  a  fame  that 
time  itself  will  honor  the  longer  time  shall  last.  For  deeds  have  been 
performed  even  during  the  brief  period  of  this  war  which  show  two  things: 
First,  that  the  United  States  is  capable  of  waging  war  with  all  the  re- 
sources and  all  of  her  men  for  the  sake  of  hunuuiity,  Christianity,  iiikI 
liberty.  That  resi)onse  coining  back  from  the  people  of  tlie  Uuited  Statist 
at  the  close  of  the  nineteenth  century  is  a  proper  and  fitting  response  ttj 
that  splendid  spirit  of  our  fathers  who  planted  this  niagnUioent  Republic 
upon  this  wonderful   country   of  ours.     There  is  such   a   spirit   here.  . 

Not  only,  Mr.  President,  are  they  fighting  in  a  cause  in  which  they  havt- 
no  motive  but  justice,  liberty,  humanity,  and  Christianity,  Vjut,  sir,  they 
are  fighting  with  intrepidity  and  honor,  with  marked  skill,  ability,  valor 
which  have  not  been  excelled  in  any  history  that  has  ever  been  wrilten 
by  the  pen  of  man.  No  nation  stands  higher  to-day  than  the  United  Stiites 
on  the  rolls  of  glorious  warfare  and  magnanimous  conduct. 

"POWERFUL  IN  THE   MOTIVES  OF  WA.Il." 

The  very  example  we  have  set  before  the  world  in  the  hist  two  months 
will  warn  the  nations  of  this  earth  that  while  we  are  a  peace-loving  people 
and  are  disposed  to  do  all  that  can  be  done  to  keep  on  good  terms  wiili 
humanity  and  all  the  nations  of  the  world,  there  is  not  that  nation  which 
exists,  though  it  may  be  the  most  powerful  monarchy  that  was  ever  knit 
together  by  the  hands  of  oppression  and  craft,  that  does  not  feel  to-day 
that  the  people  of  the  United  States  and  their  Government  are  more  power- 
ful than  any  other  nation  that  exists  on  the  earth — not  powerful  only  in 
war,  but  powerful  in  the  motives  of'  war.     That  we  have  already  achieved. 

I  CAN  NOT  RECONCILE  IT  TO  MYSELF  THAT  THIS  (.REAT  AND 
AUGUST  BODY,  OF  WHICH  I  HAVE  HAD  THE  HONOR  OF  HEING  A 
MEMBER  NOW  FOR  TWENTY-ONE  YEARS,  COULD  SET  ITSELF  i;s' 
THE  ATTITUDE  WE  OCCUPY  THIS  EVENING  OF  ANTAGONISM  TO 
THE  ADMINISTRATION  THAT  IS  CONDUCTTNCi  THIS  WAR,  AND  DOING 
IT  SO  WELL  AND  WITH  SUCH  HIGH  PURPOSES  AND  MOTIVES;  THAT 
WE  SHOULD  BE  HERE  LAYING  PIPE  FOR  THE  PURPOSE  OF  CON- 
TROLLING ELECTIONS  IN  NOVEMBER,  AND  THAT  THAT  SHOULD 
BE  THE  MOTIVE  OF  OUR  CONDUCT.  IF  THAT  IS  NOT  THE  MOTIVE, 
LET  THE  JOINT  RESOLUTION  COME  TO  A  VOTE  WHEN  THE  DEBATE 
IS  EXHAUSTED. 

Mr.  PRESIDENT,  I  HOPE  WE  WILL  NOT  HAVE  ANY  MORE  OF 
THIS  PBOCEDUEE  ON  THIS  CASE,  TO  SAY  THE  LEAST  OF  IT, 


6 

Annexation  from  the  Standpoint  of  American  Interest. 


(From  the  Congressional  Record,  No.  139,  Vol.  31.) 

Mr.  GROSVENOR  said: 

Mr.   Speaker,   I   had   been  at  great  pains,   with   a  great  deal   of  very 

valuable  help,  to  try  to  answer,  in  a  modest  way,  the  very  able  argument 

ade  against  this  proposition  by  the  distinguished  and  eloquent  gentleman 

.  om  Indiana  (Mr.  Johnson).     I  have  taken  up  the  able  suggestions  of  That 

gentleman  to  the  number  of  about  sixty-five  paragraphs,   and   have  tried 

iu  a  very  concise  sort  of  primer-like  way  to  answer  each  one  of  his  sug- 

estions. 

Point  1. — The  Hawaiian  nation  has  everj^thing  to  gain  and  nothing  to 
lose  by  annexation.  Annexation  should  be  discussed,  considered,  and  de- 
cided solely  from  the  standpoint  of  American  interest,  and  with  the  sing'e 
purpose  of  promoting  the  happiness  and  welfare  of  those  who  dwell  under 
the  shadow  of  the  American  flag. 

Reply. — He  first  admits  that  annexation  will  be  beneficial  to  Hawaii.  He 
then  says  it  should  be  considered  solely  from  the  American  standpoint, 
and  then  purposes  to  go  behind  the  record  and  oppose  annexation  on  the 
grounds: 

That  the  Hawaiian  people  are  opposed  to  it. 

That  the  Hawaiian  Government  is  misrepresenting  the  Hawaiian  i)eople. 

That  a  petition  from  Hawaiians  has  been  filed  against  it. 

That  supporters  of  annexation  do  not  submit  the  proposition  to  popular 
vote. 

BEPUBLIC  OF  HAWAII  A  DE  FACTO  GOVERNMENT. 

This  country  and  the  world  has  recognized  the  Republic  of  Hawaii  as 
a  de  facto  and  de  jure  government. 

It  has  maintained  itself  for  five  years,  since  January  17,   1893. 

It  has  lawfully  and  peaceably  adopted  a  constitution  directing  its  execu- 
tive to  negotiate  a  treaty  of  annexation  with  the  United  States.  (Art.  32, 
constitution  Republic  of  Hawaii.) 

It  has  not  withheld  the  franchise  from  any  citizen,  native  or  foreign 
born,  the  sole  change  made  by  the  Republic  in  the  qualification  of  voters 
being  that  the  oath  of  allegiance  shall  be  to  the  Republic  instead  of  the 
monarchy. 

Under  this  constitution  a  Senate  and  House  of  Representatives  was 
elected  in  1894,  both  of  which,  at  both  the  special  session  of  1894  and  the 
regular  session  of  1896,  passed  unanimous  resolutions  in  favor  of  annex- 
ation. 

All  elections  in  Hawaii  are  under  the  Australian  ballot  system  and  are 
absolutely  secret. 

No  charge  has  been  made  by  even  the  Royalists  that  the  elections  are 
not  fairly  conducted  and  a  free  expression  of  the  wishes  of  the  voters.  A 
majority  of  those  who  have  taken  the  oath  of  allegiance  to  the  Republic 


of  Hawaii,  and  who  are  now  voter*,  are  native  Hawaiians.    A  majority  of  the 

members  of  the  first  House  of  Representatives,  including"  the  speaker,  were 
full-blooded  native  Hawaiians. 

The  second  general  election  under  the  Republic  in  September,  1897,  re- 
sulted in  the  return  of  a  Legislature  again  unanimously  pledged  to  annex- 
ation. 

The  Hawaiian  Government  has  negotiated  a  treaty  of  annexation  in 
accordance  with  the  terms  of  the  constitution,  in  accordance  with  the  verdict 
of  two  general  elections,  in  accordance  with  the  unanimous  vote  of  both 
houses  of  the  Legislature  at  two  sessions  of  the  same,  and  the  treaty  has 
been  ratified  by  the  Hawaiian  Senate. 

Point  2. — The  masses  of  Americans  are  indifferent.  "The  very  few  of 
our  countrymen  who  have  given  any  attention  to  the  subject  are  inclined  to 
favor  annexation."  "The  superficial  and  unreflecting"  are  appealed  to  by 
national  vanity  and  find  the  x^roject  hard  to  resist. 

The  proper  method  of  disabiising  the  public  is  to  break  down  the 
doors  of  the  Senate  and  let  the  people  see  "the  danger  that  lurks  in  the 
proposition." 

Reply. — He  admits  that  those  who  have  studied  the  subject  favor  an- 
nexation. 

The  following  is  a  list  of  a  few  of  the  "superficial  and  unreflecting" 
who  have  favored  annexation,  in  addition  to  a  majority  of  the  present 
Senate,  who  are  admitted  by  Johnson  to  supjwrt  it: 

A  FEW  OF  THE  "UNREFLECTING"   FAVORING  ANNEXATION. 

President  Franklin  Pierce  (Annexation  Handbook,  page  42),  President 
Andrew  Johnson  (Annexation  Handbook,  page  43),  President  U.  S.  Grant 
(Annexation  Handbook,  page  43),  President  Benjamin  Harrison  (Annexa- 
tion Handbook,  page  44),  President  William  McKinley  (Annexation  Hand- 
book, page  45.) 

Secretary  of  State  William  L.  Marcy  (Annexation  Handbook,  page  51), 
Secretary  of  State  William  H.  Seward  (Annexation  Handbook,  page  51), 
Secretary  of  State  Hamilton  Fish  (Annexation  Handbook,  page  51),  Secre- 
tary of  State  James  G.  Blaine  (Annexation  Handbook,  page  52),  Secretary 
of  State  Thomas  F.  Bayard  (.\nnexation  Handbook,  page  53),  Secretary  of 
State  John  W.  Foster  (Annexation  Handbook,  page  54),  Secretary  of  State 
John  Sherman   (Annexation  Handbook,  page  54). 

Ministers  to  Hawaii  Luther  Severance  (Annexation  Handbook,  page  58), 
David  L.  Gregg  (Annexation  Handbook,  page  59),  Edward  McCook  (An- 
nexation Handbook,  page  60),  Henry  A.  Pierce  (Annexation  Handbook,  page 
61),  John  L.  Stevens  (Annexation  Handbook,  page  62),  Harold  M.  Sewall. 

Gen.  J.  M.  Schofield,  Gen.  B.  S.  Alexander,  Admiral  Dupont,  Admiral 
George  Brown,  Admiral  Belknap,  Captain  Mahan,  Admiral  Porter,  ex- 
Senator  Dolph,  of  Oregon;  ex-Senator  Ingalls,  of  Kansas;  ex-Senator  Butler, 
of  South  Carolina;  Dean  Wayland,  of  Yale  Law  School;  ex-Secretary  of 
the  Navy  Benjamin  F.  Tracy,  Civil  Service  Commissioner  Proctor,  ex-Gov- 
ernor Stone,  of  Missouri;  ex-Governor  Johnson*  of  Missouri;  ex-Secretary 
of  the  Interior  Noble, 


g 

FBATJD8  IN  ANTI-ANNEXATION  PETITION. 

Point  S. — Two-thirds  of  the  native  Hawaiians  have  signed  a  petitioii 
protesting  against  annexation. 

Reply. — Four  thousand  nine  hundred  and  thirty-eight,  or  23  per  cent,  ot 
the  sigTiers  of  the  petition  are  minors. 

The  petition  states  that  the  minors  are  between  the  ages  of  14  and  20. 

It  shows  upon  its  face  that  there  are  677  of  the  petitioners  under  14 
years  of  age,  of  whom  no  less  than  13  are  only  2  years  of  age. 

The  ages  of  278  of  the  minors  under  14  years  of  age  have  been  fraudu 
lently  raised  to  over  14  years  of  age  in  order  to  try  and  make  it  appear  thai 
they  are  of  more  responsible  age,  and  to  conform  to  the  certificate  in  tlu 
petition  that  they  are  over  14  years  of  age. 

The  petition  shows  on  its  face  that  the  signatiires  of  over  1,400  of  the 
adult  signers  are  not  original,  but  are  forgeries. 

In  one  case  a  whole  page  of  the  male  signatures  and  one  page  of  thi- 
female  signatures  are  all  in  one  handwriting. 

In  one  case  126  signatures  and  in  another  178  are  all  in  the  same  hand 
writing. 

The  agea  of  the  petitioners  are  unreliable,  many  of  them  being  fiUiHi 
in  at  a  different  time  from  the  signatures  and  giving  round  numbers  instead 
of  exact  figures. 

Each  and  every  page  containing  the  fraudulent  insertions,  as  abovr 
stated,  is  certified  to  as  being  genuine  by  the  ofTicers  getting  the  pctitioi^ 
up,  showing  entire  lack  of  good  faith  on  their  part. 


METHOD   or  ACQUIRING   TERRITORY   BY   TREATY 

Point  4. — The  supporters  of  annexation  are  unwilling  to  submit  the  ques 
tion  of  annexation  to  the  ballot  of  the  peojjle  of  Hawaii. 

Reply. — In  the  first  place,  why  should  the  question  of-  annexation  be 
submitted  to  popular  vote  in  Hawaii  any  more  than  in  the  United  States? 
The  people  of  the  United  States  assume  obligations  and  responsibilities 
by  virtue  of  annexation  as  well  as  do  the  people  of  Hawaii.  Why  should  not 
the  question,  therefore,  be  submitted  to  a  popular  vote  in  the  United  States? 

The  reply  to  this  is  that  the  Constitution  of  the  United  States  does  not 
provide  that  annexations  of  territorj"^  shall  be  submitted  to  popular  vote. 
Neither  does  the  constitution  of  Hawaii. 

The  Constitution  and  precedents  have  established  the  proposition ^h at 
the  legal  method  of  acquiring  territory  is  by  treaty,  which  shall  l>e  ratified 
by  the  Senate;  or  by  joint  resolution  or  bill,  approved  by  a  majority  of  both 
Houses. 

For  United  States  Supreme  Court  decisions  aflBrming  the  constitutional 
power  of  annexation,  see  Thurston's  Handbook  on  Annexation,  page  24. 

In  none  of  the  annexations  which  have  been  made  by  the  United  States, 
with  the  exception  of  Texas,  ha«  cither  a  direct  or  indirect  popular  vote 
becD  taJcen  in  the  United  States  or  in  the  country  annexed.     In  the  case 


of  Texas,  an  indirect  vote  was  taken  by  the  adoption  of  a  State  constitution 
by  the  people  of  Texas  after  the  Texas  Legislature  had  ratified  the  joint 
resolution  passed  by  the  Congress  of  the  United  States. 

ACT  AUTHORIZING  THE  KING  TO  NEGOTIATE  A  TREATY. 

The  constitution  of  the  Republic  of  Hawaii,  under  which  two  Legis- 
latures have  been  elected,  contains  a  specific  clause  authorizing  and  directing 
the  president  to  negotiate  a  treaty  of  annexation  with  the  United  States, 
subject  to  the  ratification  of  the  Hawaiian  Senate.  (Art.  32,  Constn.  Rep. 
Hawaii.) 

It  Is  claimed  that  this  is  a  new  authority  which  has  been  usurped  by  a 
revollitionary  government,  and  that  the  Government  has  not  the  power  to 
negotiate  such  a  treaty  except  upon   popular  vote. 

The  reply  to  this  is  that  from  ancient  times  the  power  to  negotiate  all 
treaties,  annexation  or  otherwise,  has  been  exclusively  in  the  executive  of 
Hawaii,  as  is  evidenced  by  precedents  in  the  past. 

In  1851,  in  view^  of  aggressions  then  being  committed  by  the  French, 
Kamehameha  III,  without  even  consulting  the  Legislature,  executed  a 
provisional  cession  of  Hawaii  to  the  United  States. 

In  1852  the  Hawaiian  Legislature  passed  a  specific  act  authorizing  the 
King  to  negotiate  at  any  time  a  treaty  of  annexation. 

This  act  has  never  been  repealed  and  still  remains  a  part  of  the  law  of 
Hawaii. 

KING  KAMEHAMEHA  ANNEXATION   TREATY   OE   1854 

In  1854  King  Kamehameha  III  negotiated  a  formal  treaty  of  annexation 
with  the  United  States,  with  provision  for  popular  vote. 

Not  only  has  the  present  treaty  been  negotiated  in  accordance  with  the 
general  powers  of  the  Executive  of  Hawaii,  the  statute  of  1852  above  re- 
ferred to,  and  the  specific  authority  of  the  constitution  of  the  Republic,  but 
the  Legislature  of  Hawaii  in  both  Houses  has  voluntarily  at  two  successive 
sessions  unanimously  passed  resolutions  ratifying  and  approving  of  the  an- 
nexation proposition,  and  a  new  Legislature  has  just  been  elected  which  is 
committed  to  annexation. 

For  the  United  States  to  now  refuse  to  annex  Hawaii  unless  a  popular 
vote  were  first  taken,  would  be  to  take,  not  only  an  entirely  new  position 
for  which  there  is  no  precedent,  but  to  go  behind  the  Hawaiian  records 
and  require  .something  to  be  done  which  neither  the  laws  of  the  United 
States  nor  Hawaii  have  ever  required  to  be  done  in  the  past  and  do  not 
require  to  be  done  now. 

Again,  the  proposition  is  not  that  the  vote  should  be  submitted  to  the 
lawful  voters  of  Hawaii,  but  to  "all  the  people  of  Hawaii." 

In  the  first  place,  nearly  one-half  of  the  people  of  Hawaii  are  Chinese 
and  Japanese,  who  have  no  right  to  vote  now,  and  never  had  the  right  to 
vote  there,  and  who  by  the  constitution  of  Hawaii  are  not  eligible  to  exercise 
the  franchise. 

If  it  is  claimed  that  what  is  meant  by  the  "people  of  Hawaii"  are  those 
who  could  vote  under  the  Monarchy,  the  reply  is  that,  under  the  constitu- 
2 


10 

tioTi  of  the  Republic  of  Hawaii,  all  who  were  voters  under  the  Monnrchy 
can  become  voters  under  the  Republic  by  simply  taking-  the  oath  of  alle- 
giance to  the  Republic,  and  no  one  is  eligible  to  become  a  voter  under  the 
Republic  unless  he  takes  such  an  oath. 

All  those  who  are  not  now  voters  are  therefore  nonvoters,  simply  by 
rea^oa  of  their  unwilling-ness  to  accept  the  Republic  and  their  adhesion  to 
the  cause  of  monarchy. 

Point  5. — The  monarchy  was  overthrown  by  American  citizens.  Although 
he  argued  the  other  way  before,  "the  color  is  given  to  the  accusation  by  the 
pertinacity  and  determination  with  which  this  treaty  is  now  being  pressed." 

Reply. — For  reply  to  the  charge  that  the  roonarohy  was  overthrovro  by 
United  States  officials,  see  Thurston's  Handbook,  page  38,  reply  to  eighteenth 
objection. 

There  is  no  more  pertinacity  and  determination  being  displa3'^ed  now 
than  there  was  in  1893  and  1894,  when  Mr.  Johnson  very  ablj^  refuted  this 
charge.  (See  Morgan  Report,  volume  1,  page  7;  Senate  Report  No.  227, 
Fifty-third  Ck>ngTess,  second  session.) 

Point  6. — The  jjcople  of  Hawaii  are  not  sufficiently  intelligent  to  be  in- 
corporated into  our  domain. 

Intelligence  is  the  exception  there;  ignorance  is  tJie  general  rule. 

Even  if  Americans  "pour  into  and  take  possession  of  the  islands,  the 
ignorance  will  remain." 

EIGHTY-FOUR  PER  CENT.   OF  HAWAIIANS  ABLE   TO   READ   AND 

WRITE. 

Reply. — The  last  Hawaiian  census,  taken  in  September,  1896,  gives  the 
percentage  of  those  able  to  read  and  write,  as  follows: 

(The  age  from  which  illiteracy  is  reckoned  in  Hawaii  is  6  j'ears  instead 
of  10  years,  as  it  is  in  this  country.  If  10  years  were  made  the  basis,  as 
in  this  country,  the  percentage  of  those  able  to  read  and  write  would  be 
much  higher.) 

Hawaiians,  pure  blooded,  j^er  cent  able  to  read  and  write,  83.97;  part 
Hawaiians,  mixed  blood,  per  cent  able  to  read  and  write,  91.21;  the  two 
making  an  average  of  85.28  per  cent. 

The  statistics  show  that  26  per  cent  of  the  pure-blooded  and  69  per  cent 
of  the  part  Hawaiians  are  able  to  read  and  write  in  English. 

The  statistics  also  show  that  of  the  14,000  children  between  6  and  15 
years  of  age,  81  per  cent  are  attending  school,  in  addition  to  which  there  are 
several  thousand  under  6  years  of  age  attending  kindergarten  schools,  and 
over  2,000  who  are  over  15  j'ears  of  age  attending  school. 

Free  public  schools,  all  taught  in  English,  are  maintained  throughout 
the  country  at  Government  expense,  while  there  is  a  compulsory-education 
law  under  which  all  children  are  obliged  to  attend  school  between  the  years 
of  6  and  15. 

The  Census,  page  100,  says: 

"The  system  of  enforcing  the  law  for  bringfing  children  into  school  is 
peculiarly  efficient  in  these  islands.  Very  few  children  escape  being  obliged 
to  attend  school.     *     *     *     There  are  very  few  countries,  however,  where 


]] 

education  is  so  universal.  *  *  *  Those  who  are  illiternte  come  to  ns  from 
abroarl." 

With  refjard  to  the  Portug-nese  and  their  alleg-ed  tindesirability,  the 
charge  is  without  foundation.  Like  the  poor  peasant  population  of  other 
countries  which  comes  to  the  United  States,  the  majority  of  them  are  un- 
able to  read  or  write,  the  percentage  in  Hawaii  who  are  able  to  read  and 
write  being  28. 

I'ut  they  are  industrious,  economical,  and  moral,  constituting  to-day  the 
best  laboring  population  of  Hawaii. 

Neither  the  Chinese  nor  Japanese  are  eligible  to  citizenship  in  Hawaii. 
They  are  aliens  there  as  in  the  United  States,  and  annexation  will  not 
change  that  status.  They  have  no  control  in  the  Government  now  and 
they  will  not  after  annexation. 

ADMISSION  TO  STATEHOOD. 

A  fair  general  estimate  may  be  made  that  within  five  years  after  any 
given  lot  of  Japanese  arrive  in  Hawaii,  one-third  of  them  will  have  re- 
turned to  Japan,  and  thereafter  not  less  than  10  to  15  per  cent  will  return 
each  year. 

Point  7. — The  supporters  of  annexation  say  that  annexation  does  not 
necessarily  imply  that  it  is  to  become  a  State. 

"For  this  very  reason  T  antagonize  it  with  all  the  more  resclution." 

No  territory  should  be  annexed  unless  "in  due  course  of  events  it  will 
become  entitled  to  membership  in  the  Federal  Union." 

RepJll. — There  is  no  reason,  precedent,  common  sense,  or  law  requiring 
the  admission  of  any  given  territory  to  statehood  until  it  and  its  inhabitants 
are  fitted  therefor. 

Louisiana  was  annexed  in  1803,  and  the  northwest  portion  thereof  was 
only  admitted  to  statehood  in  1890. 

Ne'v  Mexico  and  Arizona  wei-e  annexed  in  1849.  They  have  not  yet  been 
admitted  to  statehood. 

Alaska  was  annexed  in  1867,  and  has  not  yet  even  been  provided  with  a 
Territorial  government. 

If  it  is  not  inconsistent  with  law  and  American  institutions  to  acquire 
territory  and  withhold  statehood  for  thirty,  fifty,  and  ninety  years,  why 
can  not  the  same  or  any  other  territory  be  held  for  a  hundred  or  any  other 
period  of  years,  until  it  is  fitted  for  statehood? 

If  that  time  never  comes,  well  and  good.  When  it  does  come,  if  ever  it 
does,  is  time  to  change  its  status,  and  neither  in  the  making  or  changing  of 
that  status  is  there  anj^  violation  of  the  principles  of  American  institutions. 

The  treat}'  leaves  the  form  of  the  government  of  Hawaii  absolutely  in 
the  hands  of  Congress,  providing  that  until  changed  by  Congress  the  local 
laws  not  inconsistent  with  the  United  States  Constitution  shall  continue  in 
force. 

HAWAII  HAS  A  FULLY  ORGANIZED  GOVERNMENT. 

Hawaii  already  possesses  so  fully  organized  a  government  that  only  a 
few  general  adaptive  statutes  will  have  to  be  enacted  by  Congress  in  order 
to  create  a  full}'  eqviipped  American  Territorial  government. 


12 

Point  S. — In  parajriaphs  22  and  23  he  dwells  on  the  "sordid  policj,"  "un- 
befitting the  genius  of  a  great  and  free  people,"  to  have  territory  under  a 
government  other  than  statehood,  and  enters  a  "solemn  protest  against  the 
consunimatiou  of  this  colossal  blunder." 

Reply. — There  is  no  connection  between  territory  being  held  as  a  Ter- 
ritory and  a  "sordid  policy." 

The  Territories  of  the  United  States  have  practically  self-government  in 
all  local  affairs.  Their  sole  limitation  is  in  participation  in  the  Federal  Gov- 
ernment. 

The  limitations  connected  therewith  arfe  precisely  the  same  as  in  the 
great  self-governing  colonial  governments  of  Canada  and  Australia.  In  both 
cases  local  affairs  are  controlled  by  the  local  people,  and  in  each  case  there 
is  no  participation  in  the  Federal  Government. 

No  one  certainly  will  claim  that  the  Canadian  and  Australian  govern- 
ments are  the  victims  of  a  "sordid  policy." 

This  talk  is  buncombe. 

Point  9. — We  do  not  need  this  territory'  in  which  to  expand  our  popu- 
lation. *    *    * 

We  shall  not  require  an  overflow  for  a  century. 

We  have  a  vast  empire  sparsely  settled. 

Our  70,000,000  of  people  can  be  put  into  Texas  alone  without  interfering^ 
with  their  freedom  of  action. 

There  is  nothing  in  the  national  growth,  either  present  or  prospective, 
which  requires  annexation. 

THE  PRIME  VALUE  OF  HAWAII. 

Keplu. — The  same  argument  would  have  excluded  Louisiana,  Florida, 
Texas,  and  California. 

All  the  population  of  the  United  States  could  to-day  be  accommodated 
east  of  the  ?ilississippi,  but  it  does  not  rationally  follow  that  if  the  United 
States  had  remained  east  of  the  Mississippi  onlj^  it  would  not  have  beeu 
beneficial  to  them  to  secure  territory  west  of  the  Mississippi. 

The  physical  possibility  of  squeezing  a  given  population  into  a  given 
territory  is  not  the  criterion  by  which  the  benefit  of  acquiring  additional 
territory  should  be  judged. 

It  may  be  ph3sieall3-  possible  for  all  the  people  now  in  the  United 
States,  or  who  may  live  there  for  a  hundred  years  to  come,  to  exist  within 
the  present  limits  of  the  country;  but  conditions  have  demonstrated  that 
already  the  need  of  foreign  markets  for  United  States  products  is  pressing. 

The  prime  value  of  Hawaii  to  the  United  States  is  not  by  reason  of  the 
trade  or  area  of  Hawaii  alone,  but  the  vastlj^  greater  trade  of  the  Pacific 
with  which  it  is  so  intimately  connected  and  which  it  to  so  great  a  degree 
controls. 

Point  10. — "The  acquisition  of  Hawaii  means  the  strengthening,  not  of 
the  centripetal,  but  of  the  centrifugal,  force  in  this  nation." 

He  favors  "centralized  and  unified  power,"  and  opposes  "the  acquisition 
of  insular  territoi'ial  possessions,  pursued  in  flagrant  violation  either  of  linea 
of  latituflt'  or  longitude." 


13 

"Every  island  and  every  iernorant  alien  taken  into  the  Union  makes  for 
dismemberment  and  disinteg-ration." 

OBJECT  OF  ACQUIRING  HAWAII. 

Reply. — The  objection  that  the  acquiring  of  colonies  and  outljing  terri- 
tory tends  to  weaken  the  central  g-overnment  is  directly  contrary  to  the 
argtnnent  usually  made  in  this  connection,  which  is  that  the  control  by  the 
central  government  of  provinces  which  are  not  fully  self-g-overning  pro- 
duces an  undue  centralization  of  power  in  the  "central  government." 

So  far  from  the  acquisition  of  Hawaii  being  "pnrsiied  in  flagrant  viola- 
tion either  of  lines  of  latitude  or  longitude,  "  Hawaii  is  well  within  them. 

Hawaii  lies  on  almost  the  same  line  of  latitude  that  Key  West  does,  and 
lies  500  miles  within  the  line  of  longitude  bounding  the  western  limit  of  the 
mainland  of  Alaska  and  more  than  a  thousand  miles  within  the  line  of 
longitude  bounding  the  Aleutian  and  Midway  islands,  both  of  which  belong 
to  the  United  States. 

So  far  as  the  inclusion  of  Hawaii  within  the  boundaries  of  the  Union 
tending  to  "di.sintegrate  and  dismember,"  the  main  object  of  acquiring 
Hawaii  is  to  defend  that  which  the  United  States  already  owns  on  the 
Pacific  coast,  and  to  protect  its  commerce  upon  the  I'acitic,  which  is  rapidly 
growing  to  be  the  greatest  in  the  world. 

The  local  government  of  Hawaii  will  settle  all  local  problems,  of  which 
there  will  be  many,  without  involving  the  National  Government  or  the  peo- 
ple of  other  localities  in  the  United  States,  any  more  than  does  the  settle- 
ment of  a  county-seat  fight  or  a  local-option  election  in  Arizona. 

Point  11. — It  is  a  departure  from  the  traditions  of  the  country,  a  foolish 
experiment,  to  annex  territory  not  contiguous.  The  one  experiment,  Alaska, 
is  still  an  experiment.  . 

Reply. — There  is  no  departure  from  the  traditions  of  the  country. 

The  country  has  already  made  numerous  annexations  of  insular  ter- 
ritory. 

MIDWAY  ISLAND. 

This  island  was  annexed  in  1S08  bj'  order  of  the  executive  department 
of  the  tjnited  States.  The  action  taken  thereunder  is  fully  described  in 
Senate  Executive  Document  No.  79,  Fortieth  Congress,  second  session.  An 
appropriation  of  $50,000  was  made  by  the  third  session  of  the  Fortieth  Con- 
gress by  act  approved  March  1,  ISOQ. 

This  is  contained  in  United  States  Statutes  at  Large,  volume  15,  chapter 
48,  page  279.  It  is  also  referred  to  in  the  Report  of  the  Secretary  of  the 
Navy  for  1870,  on  page  8,  and  Report  of  the  Secretary  of  the  Navy  for  1871, 
pages  6,  7,  and  8. 

The  object  of  the  annexation  was  to  create  a  naval  station  there.  Mid- 
way Island  is  the  westernmost  of  the  Hawaiian  group. 

OTHEB  ISLAND  ANNEXATION!. 

The  United  States  owns  the  Aleutian  Islands,  ext«nding  a  thousand 
miles  west  of  Hawaii,  which  it  acquired  in  conjunction  with  Alaska.  It  also 
owns  fifty-seven  other  islands  and  groups  of  islands  in  the  Pacific  and  thir- 


14 

teen  in  the  Caribbean  Sea,  which  have  been  taken  possession  of  by  American 
citizens  under  act  of  Congress  dated  Augnst  15,  1856,  which  provides  for 
the  registration  and  protection  of  islands  so  annexed.  The  principal  object 
of  such  annexations  was  to  secure  the  guano  located  on  such  islands,  but 
it  only  makes  the  precedent  so  much  the  stronger  in  that  it  indicates  that 
so  small  a  matter  as  the  securing  of  a  limited  amount  of  fertilizer  is  suffi- 
cient reason  for  insular  annexation. 

The  traditions  of  the  country  are  to  annex  whatever  territory  or  country 
is  needed. 

The  fact  that  the  greater  portion  of  the  territory  annexed  was  not  insu- 
lar is  no  precedent  or  tradition  against  insular  annexations  when  such  an- 
nexations would  be  valuable  to  the  country. 

In  other  words  the  question  of  whether  the  territory  proposed  to  be 
annexed  is  insular  or  continental  is  not  and  should  not  be  the  criterion, 
but  the  deciding  line  is  whether  or  not  its  annexation  would  be  valuable  to 
the  Uuited  States. 

The  names,  location,  and  date  of  acquisition  of  the  islands  which  have 
become  United  States  territory  under  the  above-mentioned  act  of  1856  are 
as  follows: 


Date  of  acqulsitii'ii. 

Name. 

Date  of  acquisition. 

Name. 

October  23, 1856 

Bakers. 
Jar  vis. 

February  8,  I860.... 

Liderous. 
Low  Islands. 

August  31,  1856 

Nava-isa. 

Mackin. 

DeceiiilKf  3,  18  >h 

Howlands. 

Mary  Letitiat. 

Septenilier  6,  18)0,... 

John,sons. 

Marys. 

December  27,1859... 

Barren  or  ■■^tarve. 
Enderbury. 
McKean. 
Phoenix. 

Mathews. 
Nas!<an. 
Oniros. 
Palmyros. 

December  29, 18W»... 

rhristmaa. 
Maidens. 

Pescado. 
Phcenix. 

Februarys,  I860.... 

America. 

Annes. 

Barbers. 

Raumans. 

Birnies. 

Caroline. 

Clarence. 

Dangerous. 

Danjter's  Rock. 

Davids. 

Prospect. 

Kiorsens. 

Uogewiens. 

Saniarang. 

Sar.ah  Anne. 

Sidneys, 

.Starbuck  of  Hera 

Steavers. 

Walkers. 

Washington  of  Uabaga. 

Duke  of  York. 

December  30,  18f>2.. 

Great  and  Little  Swan  in 

the 

Knderbury.     . 

Caribbean  .''ea. 

Farmers. 

August  12, 1869 

Islands  in  the  Caribbean 

Sea 

Favorite. 

not  named  in  latitude 4° 4j', 

longitude  160°  07'. 

Flint. 

N0Temb6r22,1869.. 

Pedro  Keys. 

Flints. 

Quito  Sereno. 

Frances. 

Petrel  Roncador. 

Frienharen. 

September  8, 1879... 

Serranilla  Keys. 

Gardners. 

Morant  Keys. 

Gallego. 

September  13, 1880.. 

De  Aves. 

. 

Ganges. 

Serranilla  Keys. 

Groniqne. 

Western  Triangles, 

Humphreys. 

October  18, 1880 

Islands  of  Arenas. 

Kemns. 

June  21, 1891 

Alacrans  Islands. 

See  records  of  the  State  and  Treasury  Departments. 


In  the  Pacific 67 

In  the  Caribbean  Sea 13 


Total. 


,.    7« 


16 
AGOBESSIONS   OF  THE   FBENCH. 

Point  It. — ^Hawaii  was  offered  to  the  United  States  in  1853  and  declined 
by  President  Pierce  and  Secretary  of  State  Webster. 

Reply. — Mr.  Johnson  is  incorrect  in  saying  that  Hawaii  was  offered  to 
the  United  States  and  declined. 

The  transaction  which  he  refers  to  was  the  document  which  was  dated 
March  10,  1851,  to  be  found  in  volume  2,  page  896,  of  the  Morgan  report  to 
the  Senate  of  1894,  being  Senate  Executive  Document  No.  45,  Fifty-second 
Congress,  second  session. 

The  document  mentioned  simply  states  that  by  reason  of  the  aggres- 
sions of  the  French,  the  King  of  Hawaii  placed  the  country  under  the  pro- 
tection and  safeguard  of  the  United  States  of  America  until  some  arrange- 
ments could  be  made  to  "place  our  said  relations  with  France  upon  a  footing 
compatible  with  my  rights  as  an  independent  sovereign  under  the  laws  of 
nations,  and  compatible  with  my  treaty  engagements  with  other  foreign 
nations,"  with  the  proviso  that  if  such  arrangements  be  impracticable  the 
protection  of  the  United  States  should  be  perjietual. 

This  document  was  delivered  to  the  American  minister  in  Hawaii,  but 
tlie  French  learning  thereof  and  ceasing  their  aggressions,  no  action  was 
taken  thereon  by  the  United  States. 

Point  13. — The  "possession  of  Hawaii  means  that  they  will  become  a 
source  of  irritation  for  all  time  to  come  between  ourselves  and  foreign 
nations." 

"Insular  territorial  possessions  are  a  prolific  source  of  contention." 

Annexation  will  devolve  upon  the  United  States  "the  responsibility  for 
their  management  and  control." 

"Vexed  and  annojnng  questions"  will  "arise  with  powerful  maritime 
nations"  concerning  the  "occupation  by  them  of  Hawaiian  waters  and  har- 
bors, the  use  of  the  islands  for  coaling  stations,  and  the  hundreds  of  contro- 
versies which  are  liable  to  arise  with  respect  to  this  territory." 

UNITED    STATES   "WILL    NOT    ALLOW    ANY    OTHER    COUNTRY    TO 

CONTROL  HAWAII. 

Reply. — The  possession  of  Hawaii  is  far  less  liable  to  prove  a  source  of 
"irritation  with  foreign  nations"  than  is  Hawaii's  continued  independence 
and  the  declaration  of  the  United  States  which  has  been  constantly  reit- 
erated that  the  United  States  will  not  allow  any  other  country  to  control 
Hawaii. 

So  far  as  interference  in  Hawaii  by  other  countries  is  concerned,  this 
country  is  already  committed  to  the  full  responsibility  which  ownership 
would  devolve  upon  it,  without  any  of  the  control  of  ownership. 

Annexation  will  give  the  United  States  the  control  as  w-ell  as  the  respon- 
sibility, while  under  the  present  status  it  has  all  the  resijonsibility  with  no 
control  to  keep  the  islands  from  getting  into  difficulties  with  foreign  gov- 
ernments. 

"Vexed  and  annoying  questions  will  arise  with  foreign  governments 
concerning  the  occupation  of  Hawaiian  waters  and  harbors." 

These  are  the  very  questions  Avhich  will  arise  in  case  annexation  does 
not  take  place,  but  which  can  not  arise  in  case  of  annexation  any  more 
than  thej^  arise  concerning  the  waters  of  California  and  Florida. 

What  controversies  will  arise  concerning  Hawaii  that  do  not  arise  in  any 
other  territory  which  the  United  States  has  annexed? 

Point  IJf. — "This  nation  is  practically  invulnerable  to  successful  attack 
from  a  foreign  foe.  The  ocean  forms  an  impassable  barrier  to  dangerous 
aggression." 

"We  have  a  splendid  navy  and  excellent  coast  defenses." 

"Annexation  will  destroy  our  contiguity,  take  away  our  base  of  sup- 


16 

plfeR,  surrender  the  natural  advantagres  of  defense,  and   furnish  a  hone  of 
contention  to  fight  over  and  defend   in  time  of  ptace." 

Reply. — The  statement  that  the  nation  is  now  practically  invulnerahle.  and 
that  "the  ocean  forms  an  impassable  barrier"  to  dangerous  aggression,  is 
considered  by  the  military  and  naval  authorities,  and  reiilied  tx>  iu  their 
statements   conttiined    in    the   pamphlet   lierevvith. 

They  unite  in  the  opinion  that  witli  the  control  of  Uawaii  the  Pacific 
coast  would  be  impregnable,  but  without  its  control  it  will  be  liable  to 
attack. 

MoT-eover,  the  proposition  that  the  United  States  is  safe  by  remain in;,- 
on  the  continent  does  not  cover  the  safety  of  its  foreign  commerce,  which  i:^ 
now  so  large  and  rapidl3'^  growing. 

So  far  from  the  acquisition  of  Hawaii  "taking  away  the  bases  of  sup- 
I  lies,"  it  secures  to  the  United  States  the  base  of  sujjplies  which  controls  a 
uiger  area  of  the  earth's  surface  than  any  other  one  spot  and  prevents  an;, 
foieign  nation  from  securing  a  base  of  supi)lies  from  which  the  commerce 
and  the  coast  of  the  United  States  on  the  Pacific  can  be  interfered  with. 

Point  15. — In  case  of  annexation  we  must  fortify  Hawaii.  We  must  in- 
crease our  Navy  to  defend  and  communicate  with  them.  This  will  enor- 
mously increase  appropriations. 

CONTROL  A  MEASURE  OF  ECONOMY. 

Reply. — It  will  be  necessary  to  maintain  a  na%'y  in  connection  with  Amer- 
ican interests  in  the  Pacific,  but  it  will  require  a  larger  navy  and  expendi- 
tures to  protect  the  Pacific  coast  without  than  with  Hawaii. 

The  control  of  Hawaii,  so  far  from  being  a  source  of  expense,  will  be 
a  measure  of  economy,  in  that  by  fortifying  one  point  in  Hawaii,  the 
battle  ships  of  all  nations  can  be  prevented  from  getting  to  the  I'acific 
coast,  because  they  can  not  carry  coal  enough  to  cross  the  Pacific  without 
recoaling  at  Hawaii. 

Therefore  the  one  fortification  at  Hawaii  will  answer  the  same  object 
that  would  the  fortification  of  all  the  principal  points  on  the  Pacific  coast. 

Point  16. — Annexation  will  form  a  bad  precedent  and  will  be  followed 
by  the  annexation  of  Cuba  and  Samoa. 

This  "will  be  fortified  by  artful  sophistries  of  men  who  vvill  pander  to 
the  national  vanity  and   cupidit3\" 

Annexation  is,  as  a  ride,  a  source  of  weakness. 

Reply. — So  far  as  precedent  is  concerned,  the  United  States  does  not  stand 
in  need  of  anj'  precedent  in  the  way  of  annexing  territory. 

It  has  annexed  territory  all  the  way  from  the  Tropics  to  the  Arctic,  on 
the  Atlantic,  the  Gulf,  the  Pacific,  and  the  islands  of  the  Pacific,  and  in  the 
Caribbean  Sea. 

So  far  as  precedents  are  concerned,  there  are  precedents  enough  on 
hand  to  form  a  ba^sis  of  justification  for  annexing  anything  in  the  Western 
Ilemi.siihere. 

So  far  as  the  annexation  of  Hawaii  is  concerned,  there  is  no  parallel 
between  it  and  the  islands  on  the  Atlantic  side,  for  the  rci-'^on  that  Hawaii 
stands  alone  as  a  base  of  supplies  within  the  practical  steaming  distance 
of  the  Pacific  coast. 

The  securing  of  this  one  point  removes  practically  all  possible  bases  of 
trans-Pacific  attack. 

On  the  other  hand,  there,  are  so  many  islands  on  the  Atlantic  side,  any 
one  of  which  caji  be  made  a  base  of  atta.i'-k,  that  in  order  to  secure  immunity 
from  attack  on  that  side  all  the  islands  must  be  annexed,  a  practical  im[X)s- 
sibility. 

The  status  of  Hawaii,  therefore,  is  unique  and  entirely  different  from 
Cuba  or  any  other  Atlantic  island. 

Point  17. — The  United  States  should  heed  the  advice  of  Washington  and 


17 

"avoid  all  entangling  alliances,"  and  turn  its  attention  to  the  development 
of  its  own  resources. 

"We  shall  be  wise  if  we  devote  ourselves  to  internal  development  and 
growth." 

ANNEXATION  IN  CONFORMITY  TO  THE  ADVICE  OF  WASHINGTON. 

Reply. — The  annexation  of  Hawaii  is  in  direct  conformity  with  the  advice 
of  Washington  to  "avoid  entangling  alliances." 

The  opponents  of  annexation  have  advocated  in  the  pa.st,  and  advocaT»- 
now,  that  the  United  Sta,tes  should  enter  into  a  joint  agreement  with  Kmo- 
l)ean  nations  concerning  Hawaii,  thereby  directly  entering  an  "entangling 
•illiance." 

By  absorbing  Hawaii  the  United  States  will  remove  the  possibility  of 
"entangling  alliances"  and  will  effectually  eliminate  Hawaii  from  interna- 
tional disagreements. 

As  long  AJi  Hawaii  remains  indei>endent,  without  the  power  to  maintain 
its  independence,  it  will  be  a  source  of  international  irritation  and  be  a 
menace  to  the  peac^  of  the  Pacific. 

The  necessary  incidentals  to  the  development  of  internal  resources  are 
the  development  ef  foreign  commerce,  and  Hawaii  is  indirectly  incidental 
to  the  control  of  that  commerce  in  that  all  the  commerce  to  and  from  tht- 
Pacific  and  trans-Pacific  nations  Miust  pass  its  door. 

Point  /8.— The  United  States  is  all  powerful.  All  people  realize  our  great 
strength  and  therefore  seek  no  difliculty  with  us. 

Reply. — Whether  or  not  the  strength  of  the  United  States  is  sufficient 
to  prevent  foreign  aggressions  is  unnecessary  to  discuss  in  view  of  current 
events. 

The  reiterated  sentiments  of  Washington.  Jackson,  and  others,  "that 
preparedness  for  war  is  the  most  certain  method  of  maintaining  peace," 
applies  as  well  to  Hawaii  as  it  does  to  Spain. 

The  incidents  of  the  day  demonstrates  more  than  argument  the  ne- 
cessity of  a  navy,  ai  d  if  the  United  States  is  to  have  any  navy  on  the 
Pacific  it  must,  in  oider  to  maintain  its  control  of  the  Pacific,  have  a  coal- 
ing station  at  Hawaii,  and  it  can  not  have  that  coaling  station  in  time  of 
war  unless  it  owns  the  country.     «    *    * 

ORGANIZED  LABOR  IN  FAVOR  OF  ACQUISITION. 

Now,  the  gentleman  spoke  of  the  opposition  of  organized  labor  to  the 
[lassage  of  the  bill.  There  has  been  published  in  a  morning  paper  a 
(leclaiation  of  a  certain  gentleman  who  says  that  he  is  opposed  to  the 
admission  or  the  acquisition  of  these  Islands  because  he  has  some  fears- 
born,  in  my  judgment,  of  a  lack  of  intelligence  and  a  lack  of  experience 
in  the  United  States,  and  a  lack  of  knowledge  of  its  institutions;  born  or 
the  fact  that  he  was  not  l>orn  under  them.  I  hold  in  my  hand  and  will 
i)ublish  a  letter  from  representatives  of  the  Brotherhood  of  Locomotive 
Engineers,  the  Brotherhootl  of  Locomotive  Firemen,  the  Order  of  Ilailway 
("ond\ictors,  the  Brotherhood  of  Railwi'y  Trainmen,  the  Order  of  Ilailway 
Telegraphers,  and  a  telegram  just  received  from  Montreal  from  Mr.  Sargent, 
the  head  of  the  Brotherhood  of  Locomotive  Firemen  and  Locomotive  Engi- 
neers, and  also  a  letter  from  a  distinguished  gentleman  representing  the 
Order  of  Knights  of  Labor,  and  I  will  summarize  what  they  state. 

They  state,  first,  that  there  never  was  any  action  by  the  organized 
labor  of  this  country  against  the  acquisition  of  these  islands,  and  they 
state,  in  the  next  place,  that  so  far  as  their  knowledge  goes  they  are  all 
of  them  in  favor  of  this  acquisition.  T  can  not  conceive  how  it  is  possible 
that  the  workingmen,  the  laboring  men  of  America,  can  be  opposed  to  the 
opening  \ip  of  the  magnificent  o])pnrtuiiities  tluit  seeiu  to  me  to  be  Jire- 
sented   by   the  actjuisitiun   of   these   islands. 


18 
MR.  GOMPERS  STANDS  ALMOST  ALONE. 

Washington,   U.  C,  June  IS,  1898. 

Dear  Sir:  In  replj'  to  j'our  inquiry  of  even  date  as  to  the  feeling  of 
"organized  labor"'  on  the  question  of  the  annexation  of  Hawaii,  I  beg  leave 
to  state  that  my  individual  opinion,  based  on  thirty-three  years  experience 
as  wage-earner  and  twenty  yeajs  among  organized  men,  constrains  me  to 
take  issue  wth  Mr.  Gompers,  who  was  quoted  as  oi>])osed  to  annexation 
by  Hon.  Champ  Clark,  of  Missouri,  in  his  speech  in  the  House  of  Represen- 
tatives on  Saturday  last. 

in  this  opinion  Mr.  Gompers  should  have  been  quoted  as  an  individual 
and  not  as  a  representative  of  organized  labor,  and  no  man  has  authority 
to  say  that  organized  labor  is  for  or  against  annexation,  for  the  question 
has  never  been  placed  before  organized   labor. 

Mr.  Gompers  himself,  I  am  reliably  informed^  is  a  man  of  limited  ex- 
perience as  a  wage-earner,  and  does  not  correctly  gauge  the  jjatriotic  feel- 
ing among  American  workingmen,  who  desire  to  uphold  in  time  of  war 
the  Administration,  regardless  of  their  own  political  opinions,  and  he  seems 
to  ignore  their  oft-expressed  desire  to  "extend  commerce  and  multiply  the 
opportunities  to  labor."  My  belief  is  that  Mr.  florapers,  on  this  question, 
stands  almost  alone,  as  I  ana  informed  he  did  at  the  last  convention  of  his 
own  organization  on  the  anti-Cuban  ^var  resolution. 

I  have  the  honor  to  be,  very  respectfiilly, 

A.  M.  L.WVSON, 
Master  Workman  District  Asscvihly  06,  Wusliinylon,  D.  C. 

Hon.  CiiARLKH  H.  Gkosvenor, 

House  of  Representatives. 


The  Hotel  Raleigh,  Washington,  D.  C,  June  IS,  1898. 

As  to  the  annexation  of  Hawaii,  which  in  no  sense  is  a  j^arty  issue, 
while  it  is  true  that  we  have  not  in  any  council  or  convention  taken  any 
position  on  the  matt/er,  it  is  also  true  that  the  sentiment  of  the  groat  mass 
of  the  membership  favor  the  proposition,  as  do  many  of  their  chief  execu- 
tive officers,  as  shown  by  the  inclosed  telegrams.  This  expression  has 
become  more  pronounced  as  the  apparent  necessity  grows  since  the  brilliant 
victory  of  Manilla.  Such  feelings  are  inspired  by  the  same  motives  which 
prompted  so  many  of  our  members  to  enter  the  volunteer  service. 

It  is  not  at  all  probable  that  in  the  event  of  annexation  the  condition 
of  labor  in  Hawaii  would  or  could  be  transplanted  to  this  country,  no  more 
than  the  quasi  serfdom  of  Mexico  would  find  lodgment  under  our  Consti- 
tution, but,  on  the  contrary,  I  submit  there  is  every  reason  to  believe  that 
the  advanced  intelligence,  conservatism,  and  patriotism  of  the  organized 
American  workman  would  meet  such  conditions  and  vastly  improve  them. 
There  are  so  many  illustrations  that  it  would  be  idle  to  enumerate  them. 

Yours  truly, 

W.  F.  HYXES, 

Representing  Brotherhood  Locomotive  Engineers,  Brotherhood 
Locomotive  Firemen,  Order  of  Railtoay  Conductors, 
Brotherhood  of  Trainmen,  Order  of  Railway  Teleg- 
raphers. 

Hon.  Charles  H.  Grosvenor, 

House  of  Representatives,  Washington,  D.  0. 


19 

MONTKKA.L,  Quebec,  June  14,  1898. 
W.  F.  Hynes,  Raleigh  Hotel,  Washington,  D.  C: 

As  an  American  citizen,  I  am  heartily  in  favor  of  the  annexation  of 
HawaiL 

F.  P.  SARGENT. 
Chief  of  Brotherhood  of  Locomotive  Firemen. 


Peoria,  III.,  June  IJf,  1898. 
W.  F.  Hynes,  care  C.  Orosvenor: 

Answering  your  telegram,  in  my  opinion  the  United  States  should  annex 
the  Hawaiian  Islands.  The  necessity  of  our  control  over  the  islands  in 
time  of  war  is  now  apparent  to  everyone.  Commercially,  too,  they  are  of 
great  importance  to  us. 

P.  H.  MORRISSEY, 
Grand  Master  Brotherhood  Railroad  Trainmen. 


Cedar  Rapids,  Iowa,  June  I4,  189S. 

W.  F.  Hynes,  The  Raleigh,  Washington,  D.  C: 

In  the  position  which  it  seems  the  United  States  must  hereafter  occupy 
I  deem  Hawaii  a  very  valuable,  if  not  indispensable,  acquisition. 

E.  E.  CLARK, 
Chief  Order  of  Railway  Conductors. 


CAPTAIN  MAHAN  ON  THE  NECESSITY  OE  ANNEXATION. 

From  the  speech  of  Hon.  Rotert  Hitt,  of  Illinois  (Congressional  Record  142,  toI.  31,  p.  6766). 

Captain  Mahan,  the  most  distinguished  writer  and  authority  of  our 
time  on  the  history  of  sea  power,  says: 

"It  is  obvious  that  if  we  do  not  hold  the  islands  oiirselves,  w^e  can  not 
expect  the  neutrals  in  the  war  to  prevent  the  other  belligerent  from  occu- 
pying them;  nor  can  the  inhabitants  themselves  prevent  such  occupation. 
The'  commercial  value  is  not  great  enough  to  provoke  neutral  interposition, 
[n  short,  in  war  we  should  need  a  larger  Navy  to  defend  the  Pacific  coast, 
because  we  should  have  not  only  to  defend  our  own  coast,  but  to  prevent, 
by  naval  force,  an  enemy  from  occupying  the  islands;  whereas,  if  we  preoc- 
cupied them,  fortifidations  coukl  preserve  them  to  us. 

"In  my  opinion  it  is  not  -practicable  for  any  trans-Pacific  country  to  in- 
vade our  Pacific  coast  without  occupying  Hawaii  as  a  base." 

GENEEAL    SCHOFIELD   ON   ANNEXATION. 

General  Schofield,  who  spent  three  months  on  the  islands  and  made  a 
careful  survey  of  Pearl  River  Harbor,  stated  to  our  committee: 

"At  this  moment  the  Government  is  fitting  out  quite  a  large  fleet  of 
steamers  at  San  Francisco  to  carry  large  detachments  of  troops  and  mili- 
tary supplies  of  all  kinds  to  the  Philippine  Islands.  Honolulu  is  almost  in 
the  direct  route.  That  fleet,  of  course,  will  want  very  much  to  recoal  at 
Honolulu,  thus  saving  that  amount  of  freight  and  tonnage  for  essential 
stores  to  be  carried  with  it.  Otherwise  they  would  have  to  carry  coal 
enough  to  carry  them  all  the  way  from  San  Francisco  to  Manila,  and  that 
would  occupy  a  large  amount  of  the  carrying  capacity  of  the  fleet,  and  if 


20 

they  recoal  at  Honolulu  all  that  will  be  saved.  More  than  that,  a  fleet  is 
liable  at  any  time  to  meet  with  stress  of  weather,  or  perhaps  a  heavy  storm, 
and  there  might  be  an  accident  to  the  machinery  which  will  make  it  neces- 
sary to  put  into  the  nearest  port  possible  for  repairs  and  additional  sup- 
plies. By  the  time  it  reaches  there  its  coal  supply  may  be  well-niffh  ex- 
hausted; it  then  has  to  replenish  its  coal  supply  to  carry  it  to  whatever  port 
it  oould  reach.  »**«*»*  Now,  let  us  suppose, 
on  the  other  hand,  that  the  Spanish  navy  in  the  Pacific  as  well  as  in  the 
Atlantic,  or  both,  were  a  little  stronger  than  ours  instead  of  being  some- 
what weaJcer.  The  first  thing  they  would  do  would  be  to  go  and  take  pos- 
session of  the  Sandwich  Islands  and  make  them  the  base  of  naval  opera- 
tions against  the  Pacific  coast. 

"You  have  only  to  consider  the  state  of  mind  which  exists  all  along  the 
Atlantic  coast  under  the  erroneous  apprehension  that  the  Spanisti  fleet 
might  possibly  assail  our  coast  to  see  what  would  be  the  case  if  the  Spanish 
fleet  were  a  good  deal  stronger  than  ours  and  tcjok  possession  of  Honolulu 
and  made  it  a  base  of  operations  in  attacking  the  points  on  the  Pacific  coast. 
We  would  be  absolutely  powerless,  because  we  would  have  no  fleet  there  to 
dispute  the  possession  of  the  Sandwich  Islands,  whereas,  if  we  held  that 
place  and  fortified  it  so  that  a  foreign  navy  could  not  take  it,  it  could  not 
operate  against  the  Pacific  coast  at  all,  for  it  could  not  bi'ing  coal  enough 
across  the  Pacific  Ocean  to  sustain  an  attack  on  the  Pacific  coast.  Then  the 
Sandwich  Islands  would  be  a  base  for  naval  operations  just  as  Puerto  Kico 
is  against  the  Atlantic  coast.  If  Spain  is  strong  enough  to  hold  Puerto  Rico, 
so  that  a  squadron  can  replenish  with  supplies — coal,  ammunition,  and  pro- 
visions— there,  the  whole  Spanish  fleet  can  raid  our  Atlantic  coast  at  will. 

"It  happens  that  in  this  war  we  have  picked  out  the  only  nation  in  the 
world  that  is  a  little  weaker  than  ourselves.  The  Spanish  fleet  on  the  Asiatic 
station  was  the  only  one  of  all  the  fleets  we  could  have  overcome  as  we  did. 
Of  course  that  can  not  again  happen,  for  we  will  not  be  able  to  pick  up  so 
weak  an  enemy  next  time.  We  are  liable  at  any  time  to  get  Into  a  war  with 
a  nation  which  has  a  more  powerful  fleet  than  ours,  and  it  is  of  vital  im- 
portance, therefore,  if  we  can,  to  hold  the  point  from  which  they  can  conduct 
operations  against  our  Pacific  coast.  Especially  is  that  true  until  the  Nica- 
ragua Canal  is  finished,  because  we  can  not  send  a  fleet  from  the  Atlantic 
to  the  Paciflc.  We  can  not  send  them  around  Cape  Horn  and  repel  an 
attack  there.  If  we  had  the  canal  finished,  we  would  be  much  better  off  in 
that  respect;  but  even  then  we  would  want  the  jiossession  of  a  base  very 
much." 

Admiral  Walker,  who  has  had  long  experience  in  the  waters  of  the 
Hawaiian  Islands,  emphatically  confirmed  the  views  of  General  Schofield, 
espe«  ially  that  it  would  cost  far  less  to  protect  the  Pacific  coast  with  the 
Hawaiian  Islands  than  without  them;  that  it  would  be  taking  a  point  of 
vajitage  instead  of  giving  it  to  your  enemy. 

VIEWS  OF  ADMIRAL  DUPONT  IN  1851. 

Admiral  Dupont,  in  a  report  made  as  long  ago  as  1851,  expressed  his  view 
in  ^hese  words: 

"It  is  impossible  to  estimate  too  highly  the  value  and  importance  of  the 
Sandwich  Islands,  whether  in  a  commercial  or  military  point  of  view. 
Should  circumstances  ever  place  them  in  our  hands,  they  would  prove  the 
most  Important  acqiiisition  we  could  make  in  the  whole  Pacific  Ocean — an 
acquisition  iritimately  connected  with  our  commercial  and  naval  supremacy 
iu  those  seaa." 


(No.  3.) 

THE  DINQLEY  BILL 

FROM  THE  SPEECH  OF 

Hon.  JESSE  OVERSTREET 

Of  INDIANA 

Friday,    April    39,    18Q8 

t^*  f^f  ^^ 

i 

WHR  EXPENDITURES 

FROM  THE  REnARKS  OF 

Hon.  JOSEPH  CANNON 

Of  ILLINOIS 

IN  THE  HOUSE  OF  REPRESENTATIVES 
JULY  8,  1898 


THE    DINGLEY    BILL 

FROM  THE  SPEECH  OF 

Hon.  JESSE  OVERSTREET 

Of  Indiana 

In  the  House  of  Representatives,  Friday,  April  29,  1898 


The  House  being-  in  Committee  of  the  Whole  House  on  the  state  of  the 
Union,  and  having-  under  consideration  the  bill  (H.  II.  10100)  to  provide  ways 
and  means  to  meet  war  expenditures- 
Mr.   OVERSTKEET   said: 

In  saying-  that  war  at  its  1)est  is  deplorable  I  call  attention  to  the  inter- 
rupted progress  of  our  pi-osperitj',"  -which,  begfinning  with  the  passage  of 
the  wise  measure  for  the  protection  of  our  industries  at  the  special  session 
of  this  Congress,  showed  a  steady  upward  tendency  to  the  middle  of  March, 
and  then,  in  consequence  Qi  the  rapidlj-  hastening  crisis  that  culminated  in 
hostilities  with  Spain  on  April  21,  beg-an  to  fluctuate  and  to  show  a  reverse 
tendency.  The  predicted  suii)liis  made  its  apix?arance  in  Januarj-,  1898; 
it  was  $2,000,000  in  Februarj'.  Deducting-  the  war  expenses  from  the  rev- 
enues for  March,  the  surplus  in  the  Treasury,  comparing  receipts  with 
expenditures,  was  for  that  month  nearly  equal  to  the  surplus  for  February, 
so  that  it  is  mathematically  demonstrable  that  but  fcfr  the  heavy  expen- 
ditures made  necessary  by  the  preparations  for  war,  coiipled  with  the 
business  disturbance  incident  to  the  actual  prosecution  of  the  war,  the 
normal  receipts  from  the  Dingle\'  bill  would  have  provided  ample  revenue 
to  run  the  Government  in  times  of  peace.  This  I  shall  show  in  greater  detiiil 
when  I  come  to  it. 

BONDS  TO  PROSECUTE  THE  WAR. 

I  reg-ret  that  g-entlemen  on  this  floor  Ivave  seen  fit  to  inject  partisan 
questions  into  this  debate.  I  regret  that  the  question  of  the  proposed  issne 
of  Government  obligations — bc:ids  not  issued  in  times  of  peace  to  replenish 
an  impoverished  Treasury,  as  under  the  late  Democratic  Administration, 
but  proposed  to  be  issued  to  enable  us  to  prosecute  the  war  with  vigor; 
to  feed,  clothe,  and  equip  our  soldiers — I  say  I  regret  that  this  measure 
should,  for  jjurely  })artisan  advantage,  be  made  to  stand  for  renewed  agita- 
tion of  the  silver  question,  the  problem  of  paying  these  bonds  in  silver, 
in  gold,  or  in  "coin." 

I  can  not  let  this  opportunity  pass  without  replying,  to  the  extent  of 
my  humble  ability,  to  some  of  the  criticisms  made  in  this  debate  on  Repub- 
lican policies,  and  to  review  as  succintly  as  possible  the  statistics  and 
sources  of  information  which  shed  light  upon  the  issues  raised  here. 

(2) 


3 

EEVENUE  BECEIPTS  UNDER  THE  DINGLEY  ACT  COMPARED  WITH 
THE  WILSON  TARIFF. 

Lack  of  revenue  compelled  the  Cleveland  Administration  to  encumber 
the  taxjiayers  with  an  additional  burden  of  $262,330,692  by  the  issue  of 
bonds  in  time  of  peace  to  provide  means  to  run  the  Government. 

Under  the  operations  of  the  McKinley  act  there  was  no  lack  of  funds  in 
the  Treasury,  nor  has  tlie  Government  been  embarrassed  for  funds  at  any 
time  under  Ivepublican  tariit"  policy.  This  embarrassment  began  with  the 
enactment  of  Democratic  tariff  legislation — the  passage  of  the  Wilson  bill. 
Revenues  began  to  fall  off  soon  after  the  triumph  of  the  Democratic  party 
at  the  polls  in  1893,  when  it  became  known  that  the  new  House  would 
lower  the  duties  on  imports,  and  importers  began  to  hold  back  in  anticipa- 
tion of  a  reduced  tariff.  For  the  first  three  years  of  the  McKinley  act  the 
receipts  from  customs  were: 

Twelvemonths  eiitling  September  30,  1891 8190,794,357  89 

Twelve  months  ending  September  30,  1892 ]85,8;i8,S59  19 

Twelve  months  ending  September  30, 1893 189,182,905  45 

Total 3571, 816,122' 54 

The  election  took  place  in  November,  1S92,  and  with  the  triumph  of  the 
Democratic  party  the  revenue  from  imports  fell  off  $76,591,965.69,  amounting- 
to  only  $112,590,939.77  for  the  eleven  mouths  ended  August  31,  1891.  For 
July  and  August,  under  the  McKinley  bill,  customs  receipts  were  abnormally 
small  for  the  reason  stated,  amounting  to  only  $8,427,338.46  for  the  first  and 
$11,804,911.21  for  the  latter  month,  against  average  monthly  .receipts  of 
$15,765,242.12  for  the  twelve  months  of  the  year  preceding. 

DEFICIENCY  UNDER  THE  WILSON  ACT. 

The  Wilson  Act  took  effect  on  the  28th  day  of  August,  1894,  and  was  re- 
jiealed  July  24,  1897,  by  the  Dingley  tariff.  Keceipts  from  customs  for  the 
three  years  were  as  follows: 

Twelve  months  ending  August  31,  1895 ^ 81G1,201,1P,9  35 

Twelve  months  ending  August  31,  1896 154,218,813  94 

Eleven  months  ending  .July  31,  1897 168,888,654  11 

Total 8484,308,637  40 

McKinley  Acl,  three  years 571,816,122  54 

Wilson  Act,  three  years 484,308,637  40 

Increase  over  Wilson  Tarift $87,507,485  14 

The  four-j'ears  record  of  the  defi<iency  under  the  Wilson  act  is  as  fol- 
lows for  each  fiscal  year  ended  June  30 — 

1.S94 $69,803,260 

1895 42,805,223 

1896 ." 25,203,246 

1897 18,052,454 

Total  deficiency 5155,864,183 

For  reasons  the  reverse  of  those  which  caused  imports  toi  be  abnormally 
small  during  the  closing  period  of  the  McKinley  Act,  there  was  an  ab- 
normally large  increase  in  customs  receipts  under  the  Wilson  Act  for  fhe 
closing  months  of  its  existence. 


Importers  rushed  in  wool,  sugar,  and  other  im]>ort.s  in  large  quantities 
lo  avoid  llie  payment  of  the  higher  rates  under  the  Dingley  Aet^  and  receipts 
from  customs  for  March,  1897,  rose  to  $22,833,856.46;  for  April,  $24,454,351.74; 
for  May,  $16,885,011.55;  for  Juue,  $21,560,152.36,  and  for  July,  $16,966,801.65. 
As  a  result,  when  the  Dingley  Act  took  effect,  July  24,  1S97,  receipts  from 
this  source  dropped  to  $6,987,702,  because  the  immediate  demand  had  been 
supplied  by  excessive  importations  under  the  lower  rates  of  the  Wilson  tariff. 

RECEIPTS  FOR  FEBRUARY  EXCEEDED  DISBURSEMENTS. 

This  was  foreseen  by  the  Republican  leaders,  and  in  all  the  debates 
on  the  Dingley  bill  in  Congress  this  temporary  dropping  off  of  revenue  was 
taken  account  of  and  coupled  with  the  general  prediction  that  as  soon  as 
the  effect  of  these  anticipatory  importations  had  been  overcome  the  opera- 
tion of  the  new  tariff  act  would  provide  revenues  sufficient  to  run  the  Gov- 
ernment without  further  bond  sales.  Within  seven  months  from  the  jia.ssage 
of  the  bill  this  prediction  has  been  verified,  and  the  receipts  for  February, 
1898,  for  the  first  time  since  the  election  of  1894,  exceeded  the  monthly 
disbursements  of  the  Trea.sui-y. 

The  following  table  will  show  the  customs  receipts  for  the  first  six 
months  under  the  Wilson  and  Dingley  acts: 


Month. 


September., 

October 

November.. 
December.., 
January .... 
February .. 


1894-95 
(Wilson  tariff). 


$15,564,990  66 
11,962,118  17 
10,260,692  56 
11,203,049  40 
17,361,916  25 
13,334,691  99 


1S97— 1)8 
(DiMgley  tariff) 


87,943,100  28 
9,713,494  62 
9,830,025  00 
11,600,788  74 
14,209,492  08 
15,040,680  74 


Total 169,687,448  93       J68,457,581  46 

It  will  be  noticed  that  while  the  receipts  under  the  Wilson  Act  for 
February  were  more  than  two  millions  less  than  for  September,  the  receipts 
under  the  Dingley  Act  were  seven  millions  larger  for  the  same  periods,  and 
whi'e  there  was  almost  a  continuous  falling  off  for  October,  November,  and 
December  under  the  former,  there  was  a  steady  increase  under  the  Dingley 
tariff.  In  January,  1895,  customs  revenues  showed  a  spasmodic  increase  of 
six  millions,  only  to  drop  back  four  millions  in  February.  The  seventeen- 
million  mark  for  January  was  never  again  reached  under  the  Wilson  tariff, 
except  during  the  five  months  preceding  its  repeal;  and,  taking  this  out 
of  consideration,  it  will  be  seen  that  the  receipts  for  February.  1898,  under 
the  Dingley  Act  were  not  eclii^sed  during  the  first  six  months  of  the  Wilson 
bill,  save  by  a  small  sum  for  September,  owing  to  the  increased  importations 
from  the  repeal  of  the  higher  duties  under  the  McKinley  Act. 

Deducting  the  receipts  for  January  from  both,  it  will  be  found  that 
the  receipts  under  the  Dingley  Act  for  five  months  exceeded  those  of  the 


5 

Wilson  bill  for  the  same  period  $1,862,556.69,  while  the  receipts  for  February 
under  the  Dinglcy  Act  were  but  $2,321,235.51  lower  than  the  highest  receiijts 
under  its  predecessor,  the  record  of  January,  1895,  except  the  five  months 
marking  the  debate  of  the  repeal  of  the  Wilson  tariff  in  Congress. 


TABLE  SHOWING  CUSTOMS  RECEIPTS  UNDER  itlNGLEY  LAW,  BY  DAYS  AND  MONTHS. 


Date. 


AuguBt,  1897 

September.  1897. 

Octol)er,  1897 

November,  1897. 
December,  1897.. 
Jaouary,  1898.... 
February,  1898... 


Average  daily      Total  receipts 
receipts.  for  month. 


$225,409 
264,770 
313,338 
327,667 
376,1S4 
460,306 
5.17,167 


»6,987,702 
7,913,100 
9,713,494 
9,830.025 
11,600,788 
14,269,492 
15,040,680 


BALANCE  IN  FAVOR  OF  THE  DINGLEY  LAW. 

As  a  guide,  indicating  what  a  tariff  bill  is  required  to  produce  in  order 
to  yield  sufficient  revenues,  it  may  be  stated  that  for  the  first  three  years 
of  the  McKinley  Act  the  average  monthly  revenues  from  imports  amounted 
to  $15,883,781.  This  left  a  surplus.  The  Wilson  bill,  for  the  entire  thirty^ 
five  months  of  its  operation,  yielded  only  $13,837,389  per  month,  and  this 
includes  the  abnormal  record  of  the  five  months  closing  its  history,  during 
which  the  importations  were  vastly  in  excess  of  any  other  months,  for 
reasons  explained.  Consequently  the  revenues  derived  from  imports  under 
the  Dingley  Act  for  the  month  of  February  this  year  were  sufficient  to  equal- 
ize the  expenditures,  while  as  a  revenue  getter,  when  we  include  the  receipt;? 
from  internal  revenue  as  well  as  customs,  the  Dingley  Act  comes  fully  up  to 
the  expectations  of  its  friends. 

Compared  with  the  Wilson  Act  the  Dingley  law  has  yielded  revenuess 
from  all  sources  as  follows: 


Wilson  law. 


Dingley  law. 


First  month 

Second  month 

Third  montii 

Fourth  month 

Fifth  month 

Sixth  month 

Seventh  month 

Total 

Balance  in  favor  of  Dingley  law,  $16,617,743. 


$22,621,228 
19,139,'240 
19,411,403 
21,860,1.36 
27,804,:i99 
22,888,057 
25,470,575 


«159,'201,038 


519,023,614 
21,933,098 
24,391,415 
25,168,987 
27,931,494 
28,795,227 
28,572,368 

8175,816,193 


The  Wilson  bill  was  in  operation  nine  months  before  it  showed  surplus 
revenue.  The  amount.,  then,  w^as  only  $3,932,445,  while  the  Dingley  Act 
yielded  a  surplus  of  $1,973,102.47  at  the  end  of  the  sixth  month  of  its  exist- 
ence and  in  spite  of  the  fact  that  it  bore  the  burden  of  vast  anticipatory 
importations  rushed  through  our  custom-houses  during  March,  April,  May, 
June,  and  July,  1897,  to  take  advantage  of  the  lower  rates  and  defective  a\)~ 
praisemeut  under  the  Wilson  bill. 


6 
DOMESTIC   EXPORTS  FOR   CALENDAR  YEARS   1896  AND    1897. 

President  McKinley  was  installed  but  ten  months  at  the  close  of  the 
calendar  year  1897,  and  the  Dingley  act  was  operative  less  than  six  months, 
yet,  tinder  the  stimulus  of  Republican  success  and  the  wise  legislation  of 
the  extra  session  of  Congress,  the  domestic  exports  for  1S97  rose  to  the 
unprecedented  figure  of  $1,079,863,018,  or  a  grand  total,  including  exports 
of  foreign  merchandise,  of  $1,099,743,554,  while  the  excess  of  exports  over 
imports  was  $357,112,204,  and  the  total  value  of  exports  in  1897  exceeded 
those  of  1896  in  the  sum  of  $93,906,313,  the  exports  of  1896  being  themselves 
phenomenally  large,  owing,  unquestionablj^  to  the  impetus  given  to  the 
business  enterprise  of  the  country  by  the  result  of  the  election  and  the 
exceptional  demand  for  our  breadstuffs  abroad.  These  figures  are  taken 
from  the  Monthly  Summary  for  December,  1897  (page  828),  prepared  by  the 
Bureau  of  Statistics,  under  the  direction  of  Mr.  Worthington  C.  Ford,  a 
hold-over  from  the  Cleveland  Administration. 

For  the  seven  months  ended  January,  15^8,  our  exports  of  merchandise 
amoimted  to  $718,435,950,  an  increase  of  $63,258,823  over  the  same  period 
of  1897,  while  we  imported  $340,620,389,  or  $22,657,628  less  than  for  the 
same  period  of  1897,  the  exports  for  the  seven  months  exceeding  the  exports 
for  the  seven  months  of  the  preceding  year  by  $85,916,451. 

Exports  and  imports  for  the  single  month  of  January,  1898,  compared 
with  January,  1897,  were  as  follows: 

EX PORTO. 

January,  1898 ?108,489,455 

January,  1897 93,9.51,883 

Increase,  1808 814,537,572 

I  \f  PORTS. 

January,  18^7 «ol,354,018 

January,  1898 50,802,909 

Decrease  in  imports : $551,109 

Excess  of  exports  over  imports,  January,  1898 $57,686,546 

GOLD  EXPORTS. 
At  the  same  time  our  exports  of  gold  coin  and  bullion   for  the  seven 
months  ended  January,  1898,  decreased  $3,678,195,  while  the  imports,  amount- 
mg   to   $30,885,138,   show   a   strong   reverse   tendency   from    the   outflow    of 
gold  for  several  years  under  Cleveland. 

FARM  PRODUCTS  AND  IMPLEMENTS. 
For  the  calendar  year  1897,  under  a  Republican  Administration,  the 
value  of  our  exports  of  agricultural  implements  exceeded  that  of  1896  by 
$659,078,  while  our  farmers  sent  abroad  52,697  Head  of  cattle  more  than  in 
1896,  at  a  gain  of  $2,803,120;  of  horses,  17,010  more  than  in  1896,  at  a  gain 
of  $2,016,128;  of  mules,  1,219  head  more  than  in  1896,  at  a  gain  of  $156,798; 
of  other  animals  and  fowls  to  the  value  of  $137,870  more  than  in  1896,  or, 
taking  the  lump  sum  of  all,  $5,113,916  more  than  in  1896,  realized  from  the 
export  of  cattle,  hor.ses,  mules,  and  other  animals  and  fowls,  exclusive  of 
lings  and  sheep.    These  are  the  official  figures: 


EXPORTS  OF  DOMESTIC  ANIMALS. 


Cattle 

Horaes 

Mules 

All  other,*  and  fowls., 


Total. 


1896. 


Head. 


394,772 

28,032 

6,334 


429,938 


Value. 


$36,576,412 

3,601,137 

475,106 

49,840 


$10,702,49.5 


1?97. 


Head. 


447,463 

45,642 

7,753 


500,864 


Value. 


$39,370,532 

5,617,265 

631,904 

187,710 


45,816,111 


*  Exclusive  of  sheep  and  hogs. 


1897  (Republicau). 
J 896  (Democratic) 


Increase 


Animals. 


500,864 
429.938 


70,926 


Value. 


f45,8l6,4U 
40,70J,4y5 


$5,113,916 


Otlun-  exports  for  the  twelve  months  ending-  December  31  were: 


1896. 


Wheat 

Wheat  Hour 

Corn 

Barley 

Bread  and  biscuits  *.. 
Buckwheat, 


1897. 


859,263,352 

$99,625,440 

56,886,013 

58,182,188 

44,127,276 

59,662,518 

6,594,193 

6,835,174 

663,508 

728,682 

229,.544 

737,325 

*Not  enumerated  prior  to  July,  18yi>. 

Total  breadstuffs,  1.S97 $252,-536,188 

Total  breadstuffs,  1896 182,806,242 


Increase,  1897  over  189G $09,729,946 

Here  is  an  excess  in  wlieat  exports  for  the  calendar  year  1897  over  1896 
of  .$40,363,088;  of  corn  $15,535,242,  and  of  total  bread-stuffs,  as  shown, 
$69,720,946 — surely  a  pretty  fair  showing  for  the  first  year  of  the  Repub- 
lican Administration. 

BBYAN'S  OWN  OBGAN  ADMITS  THE  REVIVAL   OF  BUSINESS. 
Even  Mr.  Bryan's  personal  organ,  the  Omaha  World-Herald,  of  which 
he  ^\as  editor,   and  in  which  he  is  said   to  be  still  a  stockholder,   admits 
that  good  times  were  returning,  for  it  said  editorially  not  long-  ago: 


8 


"Ercry  Democratic  newspaper  in  the  land  admits  that  business  is  im- 
proving, and  rejoices  that  it  is  so.  Only  organs  that  support  Republican 
administrations  rejoice  when  American  business  is  prostrate.  This  state- 
ment is  backed  up  by  the  proof.  If  the  Star  doubts  it,  let  it  search  the 
editorial  pages  of  its  llepublican  contemporaries,  bcg-inning  about  January 
1,  1893,  and  ending  promptly  on  Novemlx^r  4,  189G." 

And  following  I  present  a  compilation  from  the  market  quotations  in 
thg  Omaha  World-Herald,  showing  the  price  of  farm  products  July  10,  1896 
(the  date  of  Mr.  Bryan's  nomination),  and  their  price  one  year  after 
McKiuley's  inauguration,  March  10,  1898: 


Bar  silver  (New  York) 

Beef  steers 

Cows 

Heifers 

Calves 

Balls 

Stags- 

Stockers  and  feeders 

Hogs 

8to<^  sheep 

Veal- 

Extra  short  clears,  dry  salt 

Regular  short  clears,  dry  salt 

Bellies.- 

Lard,  Calumet 

Cheese,  young  American 

Native  steers 

Pork  loins 

Shoulders 

Green  hides,  No.  1 

Green  hides,  No.  2 

Pry  hides 

Sheep  pelts,  green 

Tallow 

Wool,  unwashed,  heavy 

Wool,  unwnshed,  light 

Wool,  washed,  medium 

Wool,  tub  waslied 

Wheat,  western  Nebraska  and  Dakota. 


July  10, 
18U6. 


March  10, 

1893. 


80  68% 

SO  54i< 

4  15 

4  90 

3  00 

3  00 

3  00 

4  10 

5  00 

6  00 

2  90 

3  75 

2  'JO 

4  00 

3  55 

6  30 

3  15 

3  83 

3  25 

3  90 

ocy. 

08 

04% 

06% 

04% 

06% 

04% 

07^ 

Oi% 

05% 

m% 

"K 

•JG% 

07 

OoJ^ 

06}^ 

04H 

05% 

04 

my^ 

03 

OCX 

09 

14 

40 

75 

0234 

02% 

07 

15 

09 

18 

18 

23 

18 

30 

63 

82 

Wheat,  No.  3,  by  carload  (new). 


Ryo 

Flaxseed 

Flour,  best  patent per  100  pounds., 

Flour,  second  best  patent do 

Corn  (car) 

Oats  (car) 

Bran 


.per  toil . 


Middlings do., 

Chop do. 

Linseed  meal 


CHICAGO  MARKETS. 


No.  2  red  wheat... 
No.  2  cash  corn.. 
No.  2  white  oats.. 


March  10, 

1898. 


IMPBOVEMENTS  IN  AGRICULTUBAL   PRODUCTS. 


In  order  to  show  more  conclusively  still  than  by  the  evidence  of  Mr. 
Bryan's  own  paper  that  prosperity  has  affected  our  farmers,  I  ask  leave  to 
incorporate  in  these  remarks  an  interview  with  Statistician  John  Hyde,  of 
the  Agricultural  Deiiartment,  relative  to  the  improvement  during  the  last 
twelve  months  in  all  lines  of  agriculture,  which  I  clip  from  the  Kansas 
City  Journal  of  March  16,  1898: 

"A  careful  estimate,"  said  Mr.  Hyde,  in  speaking  of  the  general  result 
of  his  investigations,  "shows  that  in  1897  the  farmers  received  for  their 
wheat  and  other  cereals  $130,000,000  in  excess  of  such  receipts  for  1896,  and 
at  least  $80,000,000  more  than  in  any  year  since  1892.  The  hay  crop,  although 
the  largest,  with  one  exception,  ever  raised  in  this  country,  commanded  an 
increased  price  per  ton;  wool  is  much  higher  than  at  any  time  since  1893, 
and  cotton  is  the  only  important  product  in  which  there  is  not  substantial 
imj)rovement  over  the  conditions  of  a  year  ago." 

"And  have  farm  animals  kept  pace  in  the  general  rise?"  asked  the 
Journal  correspondent. 

"The  figures  relating  to  farm  animals  show  still  more  clearly  the  im- 
proved conditions  of  the  farmer.  During  1897  the  farm  horses  of  tJie  coun- 
try increased  in  value  over  $25,000,000,  the  mules  over  $6,000,000,  milch  cows 
over  $65,000,000,  other  cattle  over  $104,000,000,  sheep  over  $25,000,000,  and 
swine  over  $8,000,000— making  a  total  increase  of  farm  stock  during  the 
year  of  more  than  $236,000,000." 


10 


IMPROVEMENT  IS  GENERAL. 

"Do  you  find  this  condition  confined  to  an^'  particular  section  or  class 
of  States?" 

"Not  to  any.  On  the  contrary,  my  reports  from  all  over  the  country  show 
the  remarkable  increase  to  be  well  distributed.  There  is  not  a  single  State 
or  Territory  in  the  Union  that  does  not  report  an  increase  in  the  averag-e 
farm  price  per  head  of  cattle  and  sheep,  and  in  most  cases  such  increase 
includes  all  farm  animals. 

"In  Georgia  the  total  value  of  farm  animals  increased  during  1897 
$3,000,000;  in  Pennsylvania  nearly  $7,000,000;  in  Ohio,  over  $10,000,000;  in 
Kansas,  over  $20,000,006,  and  in  Nebraska,  over  $22,000,000,  the  increase  in 
Kansas  and  Nebraska  being  in  the  single  year  24  and  41  per  cent.,  respect- 
ively. Combining  the  products  of  the  soil  and  the  values  of  the  various 
farm  animals,  there  is  no  doubt  that  the  farmers  of  the  country  produced 
$500,000,000  more  in  value  in  1^97  than  in  the  preceding  year.  This  is  con- 
sidered a  conservative  estimate  and  well  within  the  actual  facts. 

"The  Department  figures  on  the  acre<ige  and  crops  of  various  products 
of  the  soil  show  corn  far  in  the  lead  with  over  80,000,000  acres  and  a  total 
yield  of  1,902,967,000  bushels.  Wheat  comes  next  with  39,000,000  acres  and 
530,150,000  bushels.  Oats  has  25,730,000  acres  and  a  yield  of  almost  700,000,- 
000  bushels.  Rye  has  1,703,000  acres  and  27,363,000  bushels;  barley,  2,719,110 
acres  and  66,600,000  bushels;  potatoes,  2,534,577  acres  and  164,000,000  bushels. 
Hay  takes  an  important  j^lace,  with  over  42,000,000  acres  and  a  yield  of 
00,664,270  tons,  being  in  value  the  third  product,  corn  and  wheat  taking  the 
first  and  second  jilaces,  respectively. 

NUMBERS  AND   VALUES. 

"The  following  table  gives  the  totals  of  the  Department's  estimates  of 
the  number  and  value  of  the  live  stock  in  the  country  and  the  average  price 
per  head: 


Horses 

Mules 

Milch  cows., 
Oxen,  etc.... 

Swine 

Slicep 


Number. 


13,960,911 
2,256,668 
15,840,886 
29,264,197 
39,769,f93 
37,656,!I60 


Average 

price  per 

head. 


534  26 

43  66 

27  45 

20  92 

4  S9 

2  46 


Total 
Taliiation. 


8476,.3R2,407 
99,032,062 
434,813  828 
016,296,634 
174,351,409 
92,721,133 


"A  great  variation  is  shown  in  the  figures  by  different  States,  both  as  to 
the  number,  of  course,  as  well  as  the  average  value  per  head.  Massachusetts, 
for  instance,  has  63,162  horses,  with  a  total  valuation  of  $4,001,549,  whereas 
Vermont  has  95,469,  with  a  total  valuation  of  only  $3,781,069.  The  average 
]>rice  per  head  in  Massachusetts  is  thus  $63.35,  against  $44.14  per  head  in 
Nermont. 


11 

"In  Rhode  Island  the  average  is  $76,  the  hig-hest  of  any  State.  Illinois 
has  the  greatest  total  value,  $;]7,512,129,  although  her  average  valuation  per 
head  is  only  $;SG.Oo.  She  has  1,040,767  horses.  Texas,  with  1,148,500,  has  the 
greatest  number  of  horses,  but  as  their  average  value  is  only  $17.30,  her 
total  valuation  is  comparatively  small,  being  $19,866,178. 

"The  figures  on  the  number  and  prices  of  mules  show  the  favor  these 
animals  find  in  the  South.  Georgia,  for  instance,  has  but  111,3«0  horses, 
valued  at  $5,077,000,  against  New  York's  608,916  horses,  valued  at  $33,000,000, 
but  she  has  163,202  mules,  valued  at  $10,691,000,  against  4,511  mules  for  New 
York,  valued  at  $262,745.  Wisconsin  has  less  than  5,000j^rnules,  but  South 
Carolina  has  98,340,  valued  at  $61  each,  and  representing  $6,024,000.  Texas 
has  the  greatest  number,  265,349,  valued  at  $8,214,000. 

NEW  YORK  LEADS  IN  MILCH  COWS. 

"In  milch  cows  New  York  takes  the  lead,  having  1,402,164,  valued  at  $44,- 
869,248,  with  an  average  of  $32.  Pennsjivania  has  928,905,  with  an  avei-age 
value  of  $29.60;  total,  $27,495,000.  Massachusetts  has  174,554,  with  an  aver- 
age value  of  $32.80.  Rhode  Island  again  averages  the  highest,  with  $34, 
although  she  has  but  25,258  milch  cows. 

"In  oxen  and  cattle  other  than  milch  cows  Texas  takes  the  lead  both 
as  to  number  and  aggregate  value.  She  has  4,823,295,  at  an  average  value  of 
$15.27,  and  a  total  value  of  $73,639,656.  Rhode  Island  again  has  the  highest 
average  value,  $30.18,  and  has  10,676  of  such  animals.  Massachusetts  has 
74,134,  at  an  average  value  of  $25.82.  Pennsylvania  has  550,981,  with  an 
average  value  of  $23.64.  Kansas  and  Iowa  have  each  above  2,000,000  such 
animals,  and  Illinois,  Missouri,  Nebraska,  and  Montana  above  1,000,000  each. 

"In  sheep  there  is  even  more  variation  in  the  prices  than  in  other  arti- 
cles. The  far  Western  States  have  the  advantage  in  numbers,  but  the  East- 
ern and  Middle  States  in  average  values.  Montana  has  the  largest  number; 
New  York  has  the  highest  value  per  head.  New  York  has  825,446,  worth 
$3,332,739,  the  average  value  being  $4.04.  Montana  has  3,247,641,  with  a  total 
value  of  $7,604,081,  and  an  average  value  of  $2.40.  Ohio,  however,  has  a  com- 
bination of  numbers  and  values  which  carries  her  total  valuation  to  $8,274,- 
777.  Her  sheep  are  worth  each  an  average  of  $3.42,  and  she  has  2,316,346  of 
them.  The  Oregon  sheep  are  worth  only  $1.86  per  head,  while  those  of 
Alabama  are  still  lower,  being  $1.20  each. 

"In  hogs  the  variation  in  prices  is  also  very  great,  ranging  from  $2.13 
for  the  average  Florida  razorback  to  $9.83  for  the  Connecticut  porker.  Iowa 
takes  the  lead  both  as  to  number  and  total  valuation,  having  3,625,831  ani- 
mals, valued  at  $21,704,225,  with  an  average  value  of  $5.99  per  hog.  Pennsyl- 
vania has  1,033,001,  averaging  $6.78  each.  Nevada  has  the  lowest  total,  hav- 
ing only  11,000  hogs,  averaging  $3.94  in  value  each. 

EXPORTS  UNDER  REPUBLICAN  AND  DEMOCRATIC 
ADMINISTRATIONS. 

Mr.  Chairman,  the  movements  of  domestic  exports  show  a  peculiar  sen- 
sibility to  the  influence  of  parties.  From  1881  to  1897.  a  period  of  sixteen 
years,  eml)racing  two  Democratic  and  two  Republican  Administrations,  the 
exports  of  domestic  merchandise  show  a  steady  rise  under  Republican  power 


12 

and  a  steady  decline  under  Democratic.    The  Garfield-Arthur  Administration 
was  in  power  from  1881  to  1884,  inclusive.    The  exports  ranged  as  follows: 

1881 1814,162,951 

1882 749,911,309 

1883 „ 777,523,718 

1884 733,768,764 

Total » $3,075,366,742 

Cleveland  was  elected  in  1884,  and  during  the  four  years  of  his  adminis- 
tration we  exported: 

1885 «675,593,506 

1886 :. 699,5I5,<30 

1887 703,319,692 

1888 679,597,477 

Total 82,756,026,105. 

In  other  words,  comparing  the  footing  for  these  two  periods,  the  elec- 
tion of  a  Democratic  Administration  cost  the  producers  of  this  country  in 
four  years  $319,340,637. 

Cleveland  was  succeeded  by  a  Republican  Administration,  that  of  Presi- 
dent Harrison,  and  for  the  four  years  ensuing  the  exports  again  rose. 

1880 J814,154,864 

1890 845,999,603 

1891 957,333,551 

1892 923,237,315 

Total 83,540,725,333 

Dnder  Cleveland's  first  Administration 2,756,026,105 

Increase  under  Harrison £784,099,228 

Cleveland  succeeded  Harrison,  and  again,  under  a  Democratic  Adminis- 
tration, the  demand  for  our  home  products  fell  off: 

1893 8854,729,454 

1894 ^807,312,116 

1895 •. "807,742,415 

1896 986,830,080 

Total 83,456,614,065 

Here  is  a  loss  in  four  years  to  our  producers  of  $84,111,268.  In  other 
words,  the  two  Democratic  Administrations  since  1885  have  cost  American 
producers  in  loss  of  exports  a  total  of  $403,451,905. 

AMERICAN  TIN  PLATE  FOB  EUROPE. 

The  evidence  of  a  general  revival  of  business  among  our  manufacturers 
is  overwhelming.  I  read  the  following  Associated  Press  telegram  to  show 
what  protection  has  been  doing  for  the  tin-plate  industry: 

Elwood,  Ind.,  August  11,  1897. 

"The  first  tin  plate  manufactured  in  America  to  be  sent  to  Europe  is, 
a-ccording  to  local  manufacturers,  that  started  to-day  by  the  American  Tin 
Plate  Company,  of  Ehvood,  on  its  way  to  Italy. 

"It  was  a  carload,  consisting  of  500  boxes  of  the  most  expensive  tin  plate 
made  here,  and  it  is  said  that  this  will  be  followed  by  other  shipments,  be- 
cause of  a  growing  demand  abroad  for  American  tin  plate.  The  company 
win  to-morrow  make  a  similar  shipment  to  Englan4." 


13 

After  the  passage  of  the  McKiuIey  law,  which  created  this  industry, 
Democratic  stump  orators  all  over  the  United  States  declared  it  to  be  a 
physical  impossibility  to  compete  with  the  tiu-plate  manufacturers  of 
Wales,  and  denounced  Major  McKinley  and  the  Republican  party  for  at- 
tempting- to  develop  this  industry  at  home. 

TIN  PLATE— DECLINE   IN   IMPORTS   SINCE   THE   McKINLEY   ACT. 

The  imports  of  tin  plate  reached  their  high-water  mark  in  1891,  when 
the  McKinley  bill  took  effect  and  practically  turned  the  industry  of  tin- 
plate  making  over  to  the  American  manufacturer.  From  the  date  of  the 
enactment  of  this  measure  the  importations  steadily  decreased  in  propor- 
tion as  the  American  manufacturers  were  able  to  supply  the  demand.  This 
decrease  of  imports  is  shown  in  the  following  table  compiled  by  the  Bureau 
of  Statistics  of  the  Treasury  Department: 


Year. 

Quantity. 

Value. 

1891 

Pounds. 
1,036,489,074 
422,176,202 
628,425,902 
454,160,826 
508,038,938 
385,138,983 
230,073,683 

535,746,920 

1892 

12,315,562 

1893 

17,565,640 

1894 

11,969,518 

1895 

12,144,080 

1896. 

8,950,656 

1897 

5,344,638 

The   amount  of  manufactures   of  domestic   tin   exported   in    1897   was 
valued  at  $284,020  as  compared  with  $268,581  for  1896,  an  increase  of  $15,439. 


SOUTHERN   COTTON  INDUSTRY  GROWING  AT   THE   EXPENSE   OF 
NEW  ENGLAND  MILLS. 

A  great  deal  was  said  in  recent  debates  about  the  strike  of  the  cotton- 
mill  operatives  in  New  England. 

The  condition  of  the  New  England  cotton-spinning  industry  during  the 
early  part  of  the  year  was  due  to  perfectly  natural  causes,  and  can  not  be 
distorted  into  evidence  of  a  failure  of  prosperity.  Strikes  are  in  themselves 
no  proof  of  hard  times. 

The  great  Homestead  strike  occurred  in  the  most  prosperous  year  in 
the  history  of  the  United  States.  The  New  England  strike  was  chiefly  due 
to  a  reduction  of  wages  made  necessary  by  the  competition  of  the  Southern 
cotton  mills.  There  are  laws  in  New  England  restricting  the  hours  of 
labor,  regulating  child  labor  in  factories,  supervising  the  health  and  educa- 
tional condition  of  the  working  classes,  and  lastly,  wages  are  better  than 
in  the  South. 


14 

These  thing's  militated  against  New  England  spinners.  The  rapid 
growth  of  this  industry  in  the  South  is  shown  by  the  valuable  table  eoui- 
piled  by  Mr.  Alfred  B.  Shepperson,  of  New  York,  and  embodied  in  the  Stat- 
istical Abstract  for  1897,  showing  the  amount  of  cotton  taken  for  home 
consumption  from  1848  to  1897.  Only  the  last  ten  years  are  here  shown;  the 
figures  stand  for  thousands  of  bales: 


Year. 

Taken  voii  Home  Consumption, 

Bj'  Northern 
Mills. 

By  Southern 
Mills. 

Total. 

1887          

1,687 
1,805 
1,790 
1,780 
2,027 
2,172 
1,652 
1,580 
2,019 
1,605 
1,793 

401 
456 
480 
545 
613 
684 
723 
711 
852 
900 
999 

2,088 
2,261 
2,270 

1888 

1889 

1890 

2  325 

1891 * 

1892 

2.640 
2  856 

1893                

2  375 

1894 

2,291 
2,871 
2  505 

1895 

189C 

1897 

2,792 

It  will  be  ob.served  that  in  1893  and  1896  the  total  output  of  the  Northern 
mills  was  less  than  that  of  1S87,  while  the  increase  for  1897  over  that  of 
1887  was  bnt  106,000  bales,  whereas  the  Southern  mills  show  a  steady  in- 
crease every  year,  and  the  output  in  1897  was  .')89,000  bales  greater  than  that 
of  ten  years  before.  Nearly  all  the  Southern  cotton  mills  were  started  by 
New  l*3ng!and  capital,  and  the  successful  way  in  which  this  new  industry  is 
competing  with  the  old  mills  of  New  j^^ngland,  many  of  them  with  superan- 
nuated manufacturing  machinery,  only  goes  to  show  what  well-directed 
efforts  maj'  do  for  the  manufacturing  interests  of  the  South. 

RAILBOAD  FBEIGHT  RATES— THEIR  RELATION  TO  THE  COST  OP 

FARM  PRODUCTS. 


No  careful  student  of  economic  conditions  can  afford  to  ignore  the  re- 
lation of  railroad  freight  rates  to  the  market  price  of  farm  products  and 
merchandise.  According  to  the  tables  prepared  by  Mr.  John  P.  Meany,  edi- 
tor of  Poor's  Railroad  Manual,  there  has  been  a  very  material  reduction 
in  rates  since  "the  good  old  bimetallic  times."  In  those  times  it  cost  the 
farmer  nearly  three  times  as  much  to  ship  a  ton  of  his  products  to  market 


15 


as  it  does  now.     I  call  attention  to  the  following  table  of  averag-e  receipts 
per  ton  per  mile  of  leading  raili'oads  for  the  years  1870,  1880,  and  1896: 


Lines  east  ol'  Chicago 

West  and  Northwest  lines., 

Southwestern  lines 

Southern  lines 

Transcontinental  lines 


Average 1.99 


1870. 

Cents. 
1.61 
2.61 
2.95 
2.39 
4.50 


18S0. 

Cents. 
0.87 
1.44. 
1.05 
1.16 
2.21 


1.17 


1896. 


Cents. 

0.60 

.98 

.99 

.68 

1.07 


In  1872,  one  year  before  the  demonetization  of  silver,  it  cost  an  average 
of  33.5  cents  to  ship  a  bushel  of  wheat  from  Chicago  to  New  York.  In  1876 
the  average  rate  was  16.5  cents,  and  in  1897  it  was  only  12.32  cents.  It  cost 
an  average  of  $1.3512  in  1868  to  ship  a  barrel  of  flour  from  Chicago  to  New 
York.  In  1874  the  cost  was  reduced  to  95.45  cents,  and  in  1897  it  cost  but 
41.07  cents,  or  94.05  cents  less  than  during  "the  good  old  bimetallic  times." 
In  1876  the  rate  on  a  bushel  of  wheat  from  St.  Louis  to  New  York  by  rail 
was  39.5  cents.  In  1897  it  was  but  23.64  cents.  To  ship  a  bushel  of  wheat 
from  St.  Louis  to  Liverjxjol  in  1883  cost  22.66  cents,  and  in  1897  the  cost 
was  but  12.89  cents. 


APPEOPRIATIONS  FOE  THE  WAE  WITH  SPAIN. 

Mr.  CANNON  said:  The  sum  of  $892,527,991.16  has  been  appropriated  at 
this  session  of  Congress.  This  includes  $117,836,220  of  ijerinaiient  appro- 
priations to  meet  sinking-fund  requirements  of  and  interest  on  the  public 
debt,  and  for  other  objects,  and  $361,788,095.11  to  meet  expenditures  of  the 
war  with  S])ain. 

Deducting  the  last  two  from  the  sum  first  mentioned,  there  remains 
$412,903,676.05,  representing  the  appropriations  made  at  the  present  session 
to  meet  all  ordinary  expenses  of  the  Government;  which  sum  is  only 
$4,246,816.75  more  than  was  appropriated  at  the  last  session  of  the  last 
Congress  for  the  same  purposes  (including  the  appropriations  made  during 
the  recent  extra  session),  whicii  apparent  excess  is  almost  doubly  otfset 
by  the  increased  appropriation  of  $8,070,872.46  for  the  payment  of  pensions 
on  account  of  the  fiscal  year  1898,  provided  for  in  a  deficiency  act  at  this 
session. 

No  river  and  harbor  bill  has  been  passed  at  this  session;  but  the  sundrj' 
civil  act  carries  $14,031,613.56  to  meet  contracts  authorized  by  previous  Con- 
gresses for  river  and  harbor  works. 

No  laws  authorizing  the  construction  of  public  buildings  in  any  of  the 
cities  throughout  the  country  have  been  enacted,  and  otherwise  the  legisla- 
tion authorizing  expenditures  and  appropriations  has  been  confined  to  the 


16 


actual  necessities  of  the  Government,  and  to  meet  all  demands  incident  to 
the   existing  war. 

The  following  tables  show,  by  acts,  the  appropriations  made  for  war 
expenditures,  and  also  the  history  of  the  appropriation  bills  for  the  session. 

In  addition  to  the  ajipropriations  made  speciiically  for  expenses  of  the 
conduct  of  the  war  since  its  inception  and  for  the  first  six  months  of  the 
fiscal  year  beginning  July  1,  1S98,  contracts  have  been  authorized  on  the 
naval  aijpropriation  act  for  new  war  vessels  and  for  their  armament,  for 
which  Congress  will  be  called  upon  in  the  future  to  approj)riate  to  an 
amount  estimated  at  $19,216,156. 

APPROPRIATIONS  TO  MEET  EXPENSES  INCIDENT  TO  THE  WAR. 

For  the  National  defense,  Act  March  9, 1S93 ?50,I17,000  00 

Army  and  Navy  deficiencies.  Act  May  4, 1898 34,625,725  71 

Naval  appropriation  act.  May  4, 1898 — amount  of  ipcrease  over  preceding  naval 

appropriation  act „ 23,095,549  49 

Fortification  appropriation  act,  May  7,  1898— Amount  of  increase  over  act  as 

passed  by  House 5,232,582  00 

Naval  auxiliary  act,  May  2C,  1898 3,000,000  00 

Additional  clerical  force,  War  Department,  Auditors'  Offices,  etc..  Act  May  31, 

1898 227,976  45 

Life-saving  Service,  Act  June  7, 1898 ^ „ 70,000  00 

Army  and  Navy  deficiencies.  Act  June  8,  1898 18,015,000  00 

Appropriations  in  act  to  provide  ways  and  means  to  meet  war  ezpenditurSB,  June 

13,  1898 600,000  00 

Army  Navy,  and  other  war  expenses  for  six  months,  beginning  July  1, 1898,  in 

general  deficiency  act 226,604,261  46 


Expenses  of  bringing  home  remains  of  soldiers. 


200,000  00 


Total $301,788,095  11 

The  tables  referred  to  are  as  follows: 


Title. 


Law,  189S-99. 

Law,  1897-98. 

Date, 

Amount. 

Amount 

March  22... 

$3,509,202  00 

$3,182,902  00 

March  15... 

23,192,892  00 

23,129,344  30 

March   9... 

1,752,208  76 

1,695,308  76 

June    30... 

6,425,880  07 

6,186,991  06 

May       7... 

9,377,494  00 

9,517,141  00 

July       1  .. 

7,660,814  90 

7,674,120  89 

March  15... 

21,625,846  65 

21,690,766  90 

March  5... 

458,689  23 

479,572  83 

May       4... 

56,098,783  68 

33,003,234  19 

March  14... 

141.233,830  00 

141,263,880  00 

Agriculture 

Army 

Diplomatic  and  consular 
District  of  Columbia  .„. 

Fortification  _ 

Indian.. 

Legislative,  etc 

Military  Academy  „ 

Navy 

Pension., 


(No.  4-) 


Democratic  Opposition 
to  War  Measures. 


**  Since  the  outbreak  of  the  Spanish  War  they  have 
committed — 

That  is,  the  Democrats  in  the  House — 
about  every  error  possible.  Giving  a  grudging  sup= 
port  to  the  various  imperative  measures  which  fol- 
lowed the  original  appropriation  of  $50,000,000  for 
the  national  defense,  they  lined  themselves  up  almost 
solidly  against  the  War=  Revenue  Bill,  and  capped 
the  climax  last  Wednesday  by  casting  the  bulk  of 
their  vote  in  opposition  to  the  annexation  of  Hawaii, 
a  consummation  devoutly  desired  by  a  two-thirds 
majority  in  both  Houses  of  Congress  and  four=»fifths 
of  the  American  people  without  regard  to  party. 

<'  The  result  Is  plain.  What  was  intended  to  be,  and  what  was  origlnajly 
a  purely  American  war  has  degenerated  in  the  eyes  of  the  country  into  a 
Republican  war  with  all  that  that  implies. 

<'  The  Republican  President  stands  before  the  world  to-day  as  one  pursuing 
a  patriotic  policy  in  the  teeth  of  unreasoning  Democratic  opposition.  When 
victory  comes  to  him  and  Spain  is  humbled  in  the  dust ;  when  America's 
possessions  are  enriched  by  the  addition  of  Hawaii,  the  Philippines,  Puerto 
Rico,  and  perhaps  the  Canaries,  Mr.  McKinley  can  rise  and  truthfully  say  : 

"  'This  is  my  work — mine  and  the  Republican  party's.  As  we  saved  the 
Union  In  1861,  so  now  do  we  glorify  it  with  victory.  Ours  the  triumph, 
ours  the  spoils,  including  a  majority  in  the  new  House  of  Representatives!'  " 

"And  the  people,  on  the  8th  of  November,  will  cry  '  Amen.'  " — An  editorial 
published  in  a  leading  Democratic  newspaper  of  the  Oity  of  Woihir^ton,  the  Times,  dated  the 
22d  day  of  June,  1898. 


Congressional  Record,  p.  7281,  June  39,  1898. 


DEiVlOCRATIC  OPPOSITION 
TO  WAR  MEASURES. 


MR.  HAY  (Dem.  of  Vir^'nia).  IT  DOES  SEEM  TO  ME  TO  BE  A  Cl'- 
laOUS  FACT  THAT  NO  BILL  CAN  BE  REPORTED  HERE  WlllCir  LOOKS 
TO  THE  REAL  DEFENSE  OF  THE  COUNTRY  AND  TO  THE  REAL  PUR 
POSi:  OF  DEFEATING  THE  FOE  WITH  WHOM  WE  ARE  CONTENDING. 
WITHOUT  ADVERSE  CRITICISM  BEING  MADE,  ANT),  IN  MY  HUMBLE 
JUDG.AfENT,  THAT  SORT  OF  CRITICISM  WTIICH  OUGHT  TO  HAVE  NO 
W^EIGHT  WITH  THE  MEMBERS  OF  THE  HOUSE. 

[Record,  p.  5611,  May  1^,  18J8.] 

MR.  BAILEY  (Dem.,  of  Texas).  I  simply  desire  to  call  the  a1*ention 
of  the  House  to  the  fact  that  on  several  occasions  within  the  last  thirty  days 
this  House  has  be«n  called  upon  to  A'ot«  appropriations  and  permissions  to 
meet  extraordinary  cases,  and  yet  this  House  is  not  in  the  possession  of  any 
fact  which  warrants  it  in  supposing  that  the  executive  department  believes 
that  any  extrjiordinary  emergency  is  xipon  the  coimtry. 

ONLY  A  SHORT  TIME  AGO  WE  WERE  COilPELLED  TO  VOTE  TO 
PLACE  $50,000,000  UNDER  THE  ABSOLUTE  DIRECTION  OF  THE  PRESI- 
DENT OF  THE  UNITED  STATES.  The  situation  at  that  time  appeared  so 
critical  that  no  gentleman  on  this  side  was  w-illing  to  resist  that;   and  we  all 

voted  for  it. 

[Record,  p.  3897,  April  4, 1898.] 

MR.  RIDGLEY,  OF  KANSAS,   (POPITLIST),   OBJECTS. 

NAVAL   BATTALION,    DISTRICT    OF    COLUIMBIA. 
MR.  HILBORN.     Mr.  Speaker,   I  ask  unanimous  consent  to   take   from 
the  table  Senate  bill  No.  1316,  to  provide  for  organizing  a  naval  battalion  in 
the  District  of  Columbia,  and  a.sk  for  its  immediate  consideration. 
*  *  *  *  * 

THE  SPEAKER.  Is  there  objection  to  the  present  consideration  of  the 
bill? 

MR.  BAILEY.  Mr.  Speaker,  reserving  the  right  to  object,  I  would  like 
an  explanation  of  this  bill.  But  in  the  fir.st  jjlace  I  should  like  to  ask  tlio 
gentleman  from  California  this  question:  Does  this  bill  propose  to  perma- 
nently increase  the  naval  force  of  the  United  States? 

MR.  HILBORN.  As  the  bill  is  reported  it  does  to  the  extent  of  these 
three  companies  forming  this  battalion  of  naval  militia  in  the  District.  It 
will  increase  the  general  militia  force  of  the  District,  of  course,  to  that  c\- 

***** 

MR.  RIDGELY.     I  object,  Mr.  Speaker. 

THE  SPEAKER.     Obj»ction  is  made  by  the  gentlemnn  from  Kansas. 
[Record,  pp.  -1134,  413.'),  April  12,  ISaS.J 


0^  MR.  BAILEY  (DEM.),  OF  TEXAS,  OBJECTS. 

CUBA. 

MR.  ADAMS.  Mr.  Siieaker,  I  am  instructed  by  the  Committee  on  For- 
eign Affairs  to  jiresent  the  following-  resolution,  and  to  ask  unanimous  con- 
sent for  its  immediate  consideration. 

THE  SPEAKEK.  The  gentleman  from  Pennsylvania,  on  behalf  of  the 
Committee  on  Foreign  Affairs,  asl;s  unanimous  consent  for  the  present  con- 
sideration of  the  following  resolution. 

The  Clerk  read  as  follows: 

The  Committee  on  Foreign  Affairs,  to  whom  were  referred  House  joint 
resolutions  Kos.  54,  58,  86,  94,  173,  186,  193,  200,  201,  204,  205,  206,  207,  208,  209, 
210,  211  212,  217,  219,  220,  224,  and  231,  and  House  resolutions  Nos.  250  and  279 
and  House  concurrent  resolutions  Nos.  5  and  28,  and  Senate  joint  resolution 
No.  26,  havint;:  fully  considered  the  same  and  the  numei'ous  petitions  relat- 
ing to  the  subject,  report  the  following  joint  resolution  as  a  substitute  for 
the  said  several  resolutions  and  recommend  its  adoption.  The  committee 
i-efer  to  the  facts  set  forth  in  the  message  of  the  President  to  Congress, 
dated  April  11,  1898,  to  the  consular  reports  accompanying  it  and  to  the  re- 
])orts  of  the  naval  court  of  inquiry  upon  the  destruction  of  the  U.  S.  battle- 
ship "Maine,"  in  Havana  harbor,  February  15,  1898,  in  support  of  the  joint 
resolution  herewith  reported. 

EOBT.  ADAMS,  JIl., 
Chairman,  pro  tempore. 

Whereas,  the  Government  of  Spain,  for  three  j'ears  past  has  been  wag- 
ing Avar  on  the  Island  of  Cuba  against  a  revolution  by  the  inhabitants 
thereof,  without  making  any  substantial  progress  toward  the  suppression 
of  said  revolution,  and  has  conducted  the  warfare  in  a  manner  contrary 
to  the  laws  of  nations,  by  methods  inhuman  and  uncivilized,  causing  the 
death  by  starvation  of  more  than  200,000  innocent  noncombatants,  the  vic- 
tims being-  for  the  most  part  helpless  women  and  children,  inflicting  intoler- 
able injury  to  the  commercial  interests  of  the  United  States,  involving-  the 
destruction  of  the  lives  and  property  of  many  of  our  citizens,  entiiiling  the 
expenditure  of  millions  of  money  in  patrolling  our  coasts  and  policing  the 
high  seas  in  order  to  maintain  our  neutrality;   and 

Whereas,  this  long  series  of  losses,  injuries,  and  burdens  for  which 
Spain  is  responsible  has  culminated  in  the  destruction  of  the  United  States 
battleship  "Maine"  in  the  hai-bor  of  Havana  and  in  the  death  of  260  of  our 
seameji: 

Resolved  by  the  Senate  and  House  of  Representatives  of  the  United 
States  of  America  in  Congress  assembled.  That  the  President  is  hereby  au- 
thorized and  directed  to  intervene  at  once  to  stop  the  war  in  Cuba,  to  the 
end  and  with  the  piirpose  of  securing  permanent  peace  and  order  there  and 
establishing  by  the  free  action  of  the  people  thereof  a  .stable  and  independ- 
ent government  of  their  own  in  the  Island  of  Cuba,  And  the  President  is 
hereby  authorized  and  empowered  to  iise  the  land  and  naval  forces  of  the 
United  States  to  execute  the  purpose  of  this  resolution. 

[Loud  applause.] 

THE  SPEAKER.     Is  there  objection? 

MR.  BAILEY.  Reserving  the  right  to  object,  I  will  ask  that  the  views 
of  the  minority  go  with  this  report. 

MR.  BERRY.     Pending  the  motion— 
MR.  ADAMS.     I  yield  to  the  gentleman  from  Kentucky   (Mr.  Berry)   for 
the  purpose  of  offering  the  minority  resolution  and  report,  reserving  my 
parliamentary  rights. 


THE  SPEAKER.  The  Chair  understands  there  is  no  objection  to  con- 
sideration. 

MR.  BAILEY.  I  reserve  the  rig-ht  to  object,  because  whether  we  shall 
object  or  not  will  depend  in  some  measure  upon  whellier  a  fair  understand- 
ing about  the  debate  can  be  arrived  at.  Before  we  proceed  to  that,  I  desire 
both  propositions  to  be  before  the  House. 

MR.  QUIGG.    I  ack  for  the  reg"ular  order. 

MR.  BAILEY.    Which  is  an  objection. 

THE  SPEAKER.     The  gentleman  objects. 

MR.  BAILEY.     The  gentleman  from  New  York   (Mr.   Quigg)   objected. 

THE  SPEAKER.     The  gentleman  from  Texas  objects. 

MR.  BAILEY.  "The  gentleman  from  Texas"  did  not  object.  "The 
gentleman  from  Texas"  reserved  his  right  to  object. 

THE  SPEAKER.     Is  there  objection? 

MR.  BAILEY.  "The  gentleman  from  Texas"  reserves  his  right  to  ob- 
ject. 

THE  SPEAKER.  Is  there  objection  to  the  request  of  the  gentleman 
from  Pennsylvania? 

MR.  BAILEY.    I  ask  permission  that  the  gentleman  from  Kentucky — 

THE  SPEAKER.  The  Chair  will  annoimce  whether  there  is  objection 
or  not. 

MR.  BAILEY.  The  Chair  is  determined  to  try  to  force  the  minority — 
(Cries  of  "Regular  order!") 

THE  SPEAKER.    Is  there  objection? 

MR.  BAILEY.     I  object. 

THE  SPEAKER.     Objection  is  made  by  the  gentleman  from  Texas. 

[Record,  pp.  4187,  4188,  April  13, 1898.] 

MB.   BAILEY  (DEM.),  OF  TEXAS,   AGAINST  PROMOTION. 
INCREASE  OF  NUMBER  OF  REAR-ADMIRALS. 

Mr.  BOUTELLE  of  Maine.  Mr.  Speaker,  by  instruction  of  the  Naval 
Committee,  I  oiTer  the  resohition  which  I  send  to  the  Clerk's  desk.  1 
will  briefly  say  that  under  the  Revised  Statutes  of  the  United  States  in 
time  of  war  a  promotion  to  the  grade  of  rear-admiral  is  made  ouJy  for 
distinguished  gallantry  in  conflict  with  the  enemy,  upon  resolutions  grant- 
ing- the  thanks  of  Congrevss,  upon  recommendation  of  the  President  of  the 
United  States.  In  accordance  Avith  that  statute,  the  Committee  on  Naval 
Affairs  have  instructed  me  to  introduce  a  bill  in  this  body  for  immediate 
consideration,  and  I  may  state  that  a  similar  bill  has  been  or  will  be 
introduced  in  another  body,  in  order  to  enable  the  Executive  ol  the  United 
States  to  carry  out  ^thout  delay  the  wishes  of  the  American  people  that 
the  highest  honor  possible  under  our  laws  may  be  paid  to  that  distin- 
guished naval  officer  who  has  illustrated  the  heroism  and  glory  of  the 
AmericaK  Navy  by  adding  another  brilliant  page  to  its  history.  I  ask 
immediate  consideration  of  the  bill  for  the  addition  of  another  rear-admiral, 
for  purposes  understood  by  the  House. 


5 

The  Clerk  read  the  bill,  as  follows 

A   bill    (H.   E.    10251)    fixing   the   number   of   rear-admirals   in    the   United 

States   Navy, 

Be  it  enacted  by  the  Senate  and  House  of  Eepi-esentatives  of  the  United 
States  of  America  in  Congress  assembled,  That  the  number  of  rear-admirals 
in  the  United  States  Navy  now  allowed  by  law  be,  and  is  hereby,  increased 
from  six  to  seven,  and  this  act  shall  be  c'onstrued  and  taken  as  vafidating  <; 
and  making-  in  force  and  effect  any  promotion  to  said  rank  of  rear-admiral 
in  the  United  States  Navy  made  heretofore  or  hereafter  and  during  the 
existing  war  and  based  upon  the  thanks  of  Congress. 

Mr.  BAILEY.  Mr.  Speaker,  before  unanimous  consent  is  given  I  would 
like  to  ask  the  gentleman  from  Maine  if  under  the  existing  law  Commo- 
dore Dewey  would  not  be  entitled  to  promotion  by  virtue  of  the  fact  that 
the  Congress  has  thanked  him  by  name  ? 

Mr.  BOUTELLE  of  Maine.  Under  the  statute  he  would  not.  There 
is  no  rear-admiralship  to  which  he  could  be  promoted,  and  the  statute 
provides  that  during  the  time  of  war  promotion  to  the  grade  of  admiral 
can  only  be  made  under  conditions  like  those  of  the  present.  To  enable 
this  promotion  to  be  made  this  bill  creates  an  additional  position  of  rear- 
admiral,  to  which  this  officer,  in  the  discretion  of  the  Executive,  may  be 
appointed.  I  will  state  further  to  the  gentleman  that  this  action  of  mine 
and  the  Committee  on  Naval  Aifairs  is  based  on  consultation  with  the 
executive  department,  with  the  Senate,  and  ourselves,  and  is  absolutely 
essential  to  carry  out  the  purpose  which  I  infer  is  in  the  heart  of  every 
member  of  the  House,  to  enable  the  President  to  confer  upon  Commodore 
(leorge  Dewey  the  well-earned  title  of  rear-admiral  in  the  United  States 
Navy. 

Mr.  BAILEY.  Mr.  Speaker,  I  desire  to  say  that  no  title  and  no  office 
that  the  Congress  can  confer  upon  Commodore  Dewey  will  increase  the 
respect  in  which  the  American  people  hold  him.  I  am  sure  that  he  would 
rather  enjoy  the  satisfaction  that  comes  from  this  well-earned  victory 
than  to  take  any  additional  honor  and  emolument  which  Congress  could 
confer  upon  him.  I  DO  NOT  INTEND  IN  THIS  CASE  TO  MAKE  AN 
OBJECTION,  FOR  IT  IS  A  PECULIARLY  MERITORIOUS  ONE;  BUT  I 
THINK  WE  MIGHT  AS  WELL  UNDERSTAND  NOW  THAT  THE  SPIRIT 
OF  PATRIOTISM  SO  HIGHLY  COMMENDABLE  IS  NOT  TO  BE  MADE 
A  PRETEXT  FOR  CREATING  A  LARGE  NUMBER  OF  IMPORTANT  AND 
HIGHLY  SALARIED  OFFICES.  THIS  PARTICULAR  CASE  I  SHALL  NOT 
OBJECT  TO;  BUT  IT  MUST  BE  A  VERY  EXCEPTIONAL  CASE  IF  I 
CONSENT  TO  THE  CREATION  OF  ANY  NEW  AND  PERMANENT  OFFICE 
DURING  THIS   WAR. 

Mr.  BOUTELLE  of  Maine.  I  desire  to  say  that  this  is  a  case  without 
exception,  and  I  deem  it  without  a  parallel,  without  a  precedent  in  the 
history  of  any  war. 

The  bill  was  ordered  to  be  engrossed  and  read  a  third  time;  and  being 
engrossed,  it  was  read  the  third  time,  and  passed. 

[Record,  p.  5281,  May  9,  1898.] 


6 

MB.  McMILLIN  (DEM.),  OF  TENNESSEE,  OBJECTS. 
NAVAL  UOSl'lTAL  CORPS. 
MR.  BOUTELLE  of  Maine.     Mr.  Speaker,  I  move  that  the  House  resolve 
itself  into  Committee  of  the  Whole  Hou.se  on  the  stjite  of  the  Union  for  the 
consideration  of  the  bill  I  send  to  the  desk. 

*  »  *  »  *  » 

THE  SPEAKER.    The  Clerk  will  report  the  bill  called  up  by  the  gen- 
tleman  from   Maine    (Mr.   Boutelle). 
The  Clerk  read  as  follows: 

•  A  bill  (H.  R.  10220)  to  org-anize  a  hos™tal  corps  of  the  Navy  of  the  United 
States,  to  define  its  duties  and  regulate  its  pay. 

Be  it  enaeted,  ete..  That  a  hospital  corps  of  the  United  States  Navy  is 
hereby  est<ib]ished,  and  shall  consist  of  pharmacists,  hospital  stewards, 
hospital  apjirentices  (first  class),  and  hospital  apprentices;  and  for  this 
Ijurpose  the  Secretary  of  the  Navy  is  empowered  to  appoint  twenty -five 
pharmacists  with  the  rank,  pay,  and  privileges  of  warrant  oflRcers  and  to 
enlist,  or  causcv  to  be  enlisted,  as  many  hospital  stewards,  hospital  api)ren- 
tices  (first  class),  and  hospital  apprentices  as  in  his  judgment  may  be  nec- 
essary, and  to  limit  or  fix  the  number,  and  to  make  such  regulations  as  may 
be  required  for  their  enlistment  and  government.  Enlisted  men  in  the 
Navy  or  the  Marine  Corjjs  shall  be  eligible  for  transfer, to  the  hospital  corps, 
and  vacancies  occurring  in  the  grade  of  phannacist  shall  be  filled  by  the 
Secretary  of  the  Navj'  by  selection  from  those  holding  the  rate  of  hospital 
steward. 

Sec.  2.  That  all  necessary  ambulance  and  hospital  service  at  naval  hos- 
pitals, naval  stations,  navy-yards,  and  marine  barracks,  and  on  the  vessels 
of  the  Navy,  Coast  Sui-vey,  and  Fish  Commission,  shall  be  performed  by  the 
members  of  said  corps,  and  the  corps  shall  be  permanently  attached  to  the 
Medical  Department  of  the  Navy,  and  shall  be  included  in  the  effective 
strength  of  the  Navy  and  be  counted  as  part  of  the  enlisted  force  provided 
by  law,  and  shall  be  subject  to  the  laws  and  regulations  for  the  government 
of  the  NaA  y. 

Sec.  3.  That  the  pay  of  hospital  stewards  shall  be  $60  a  month,  the  pay 
of  hospital  apprentices  (first  class)  $24  a  month,  and  the  pay  of  hospital 
apprentices  $18  a  month,  with  the  increase  on  account  of  length  of  ser- 
vice as  is  now  or  may  hereafter  be  allowed  by  law  to  other  enlisted  men 
in  the  Navy. 

Sec.  4.  That  all  benefits  derived  from  existing  laws,  or  that  may  here- 
after be  allo\Y^d  by  law,  to  other  warrant  officers  or  enlisted  men  in  the 
Navy  shall  be  allowed  in  the  same  manner  to  the  warrant  officers  or  enlisted 
men  in  the  hospital  corps  of  the  Navy. 

Sec.  5.  That  all  acts  and  parts  of  acts,  so  far  as  they  conflict  with  the 
provisions  of  this  act,  are  hereby  repealed. 

THE  SPEAKER.  Is  there  objection  to  the  consideration  of  the  bill 
under  the  motion  proposed  by  the  gentleman  from  Maine? 

MR.  BAILEY.  Mr.  Speaker,  reserving  the  right  to  object,  I  Avould  like 
to  have  some  explanation  of  this  measure. 

THE  SPEAKER.  The  gentleman  from  Maine  desires  to  move  that  the 
House  consider  the  bill  in  the  House  as  in  Committee  of  the  Whole. 

MR.  BAILEY.     Which  motion  would  not  be  in  order. 

THE  SPEAKER.  It  would  not  be  in  order,  of  course,  without  consent. 
*  *  -;:•  *  * 

MR.  Mc^lTLLTN.  Mr.  Speaker,  until  1  can  get  the  information  which 
the  report  fails  to  give  us  I  object.  .C 


ME.  BOUTELLE  of  Main©.    The  gentleman  from  Tennessee  objects? 
THE  SPEAKER.    The  gentleman  objects. 

[Record,  pp.  6440,  M4»,  Umy  12, 1898.] 

MR.   UNDERWOOD   (DEM.),   OF  ALA.,   OBJECTS. 

HOSPITAL  CORPS  OF  UNITED  STATES  NAVY. 

Mr.  BOUTELLE  of  Maine.  Mr.  Speaker,  I  desire  to  call  up  the  bill 
(H.  R.  10220)  to  org-anize  a  hospital  corps  of  the  Navy  of  the  United  States, 
to  define  its  duties,  and  regulate  its  pay. 

The  bill  was  read,  as  follows: 

Be  it  enacted,  etc.,  That  a  hospital  corps  of  the  United  States  Navy 
is  herebj^  established,  and  shall  consist  of  pharmacists,  hospital  stewards, 
liospital  apprentices  (first  class),  and  hospital  apprentices;  and  for  this 
purpose  the  Secretary  of  the  Navy  is  empowered  to  appoint  twenty-live 
pharmacists  with  the  rank,  pay,  and  privileges  of  warrant  officers,  and 
1o  enlist,  or  cause  to  be  enlisted,  as  many  hospital  stewards,  hospital 
apprentices  (first  class),  and  hospital  apprentices  as  in  his  judgment  may 
be  necessary,  and  to  limit  or  fix  the  number,  and  to  make  such  regulations 
as  may  be  required  for  their  enlistment  and  government.  Enlisted  men 
in  the  Navy  or  the  Marine  Corps  shall  be  eligible  for  transfer  to  the 
hospital  corps,  and  vacancies  occurring  in  the  grade  of  pharmacist  shall 
be  filled  by  the  Secretary  of  the  Navy  by  selection  from  those  holding 
tlie   rate  of  hospital   steward. 

®  Sec.  2.  That  all  necessary  hospital  and  ambulance  service  at  naval 
hospitals,  naval  stations,  navy-yards,  and  marine  barracks,  and  on  vessels 
of  the  Navy,  Coast  Survey,  and  Fish  Commission,  shall  be  performed  by 
the  members  of  said  corps,  and  the  corps  shall  be  permanently  attached 
to  the  Medical  Department  of  the  Navy,  and  shall  b»  included  in  the 
effective  strength  of  the  Navy  and  be  counted  as  a  part  of  the  enlisted 
force  provided  by  law,  and  shall  be  subject  to  the  laws  and  regulations 
for  the  government  of  the  Navy. 

Sec.  3.  That  the  pay  of  hospital  stewards  shall  be  $60  a  month,  the 
pay  of  hospital  apprentices  (first  class)  $24  a  month,  and  the  pay  of 
hospital  apprentices  $18  a  month,  with  the  increase  on  account  of  length 
of  service  as  is  now  or  may  hereafter  be  allowed  by  law  to  other  enlisted 
vHien  in  the  Navy. 

Sec.  4.  That  all  benefits  derived  from  existing  laws,  or  that  may  here- 
after be  allowed  by  law,  to  other  warrant  officers  or  enlisted  men  in  the 
Navy  shall  be  allowed  in  the  same  manner  to  the  warrant  officers  or  en- 
listed men  in  the  hospital  corps  of  the  Navy. 

Sec.  5.  That  all  acts  and  parts  of  acts,  so  far  as  they  conflict  with  the 
provisions  of  this  act,  are  hereby  repealed. 

*  •  •  •  • 

Mr.  UNDERWOOD.     Does  not  this  bill  increase  the  pay  of  the  officers? 

Mr.  BOUTELLE  of  Maine.  It  makes  a  slight  increase  in  the  pay,  the 
aggregate  amount  being  something  like  $11,000  a  year. 

Mr.  UNDERWOOD.  Why  should  the  pay  of  these  officers  be  increased 
at  this  time?  i, 

Mr.  BOUTELLE  of  Maine.  Because  it  is  desirable  to  get  a  suj>erior 
class  of  meu.  The  original  bill  provided  that  the  pay  of  the  hospital 
apprentices  should  be  $24  a  month  of  the  first  class  and  $18  a  month 
for  the  second  class,  but  the  Surg«on-Qenera.l  has  called  my  attention  since 


8 

to  the  slowness  of  the  enlistment  and  the  desirability  of  increasing  this 
wage  .rate  sufficiently  to  enable  them  to  get  more  quickly  the  men  they 
desire. 

Mr.  UNDERWOOD.  I  do  not  think  we  ought  at  thig  time  to  increase 
the  wages  of  these  officers. 

Mr.  BOUTELLE  of  Maine.  Perhaps  the  gentleman  does  not  fully 
understand  that  the  wages  that  are  paid  to  the  petty  officers  of  the  Navy 
have  alwa^'s  been  determined  by  the  Department. 

Mr.  UNDERWOOD.  But  you  are  determining  by  this  bill  to  increase 
it  from  what  it  is  now. 

Mr.  BOUTELLE  of  Maine.  This  limits  the  amount  to  that  rating, 
whereas  the  Department  may  make  a  rate  of  pay  much  exceeding  this 
if  they  find  the  exigencies  of  the  service  require  it,  unless  the  limitation 
is  put  in  here. 

Mr.  UNDERWOOD.  In  view  of  the  fact  that  the  country  is  being  taxed 
by  unusual  and  extraordinary  expenses,  I  do  not  think  we  ought  to  in- 
crease the  pay  of  these  officers  at  this  time. 

MR.  BOUTELLE  of  Maine.  Well,  it  is  the  privilege  of  any  member  to 
take  exception  to  any  part  of  this  bill  or  to  place  his  own  judgment  about 
a  matter  of  that  kind  against  the  judgment  of  officers  who  are  carrying 
on  the  war  now  in  progress.  For  myself,  I  feel  under  obligations  to  pay 
the  very  greatest  deference  to 

«  *  *  *  * 

Mr.  UNDERWOOD.  I  will  say  to  the  gentleman  again  that  if  he  will 
limit  his  bill  to  the  present  war,  I  will  not  object  to  it. 

Mr.  GAINES.  There  ought  to  be  a  larger  increase  in  the  wounded 
in  this  war  before  there  is  an  increase  in  wages. 

Mr.  BOUTELLE  of  Maine*  Then  the  gentleman  wants  to  see  more 
wounded  men? 

Mr.  UNDERWOOD.    I  demand  the  regular  order,  Mr.  Speaker. 

Mr.  BOUTELLE  of  Maine.  Does  the  gentleman  object  to  the  consid- 
eration of  this  bill?    Mr.  Speaker,  I  desire  the  question  put  to  the  House. 

The  SPEAKER.  The  gentleman  from  Alabama  demands  the  regular 
order,  which  is  equivalent  to  an  objection. 

[Record,  pp.  6767,  5768,  May  S4, 1898.] 

MB.   UNDERWOOD   (DEM.),   OE  ALA.,   OBJECTS. 

POST  QUARTERMASTER-SERGEANTS  OF  THE  UNITED  STATES  ARMY. 
Mr.  HULL.  Mr.  Speaker,  I  ask  unanimous  conslent  for  the  immediate 
consideration  of  the  bill  (H.  R.  10051),  to  increase  the  number  of  post 
quartermaster-sergeants  of  the  United  States  Army. 

The  Clerk  read  the  bill,  as  follows: 

Be  it  enacted,  etc..  That  the  number  of  post  quartermaster-sergeants 
of  the  Army  be  increased  by  the  addition  of  twenty-five  post  quartermaster- 
sergeants,  to  be  appointed  by  the  Secretary  of  War  in  the  manner  now 
provided  for  by  law. 

The  SPEAKER.  Is  there  objection  to  the  present  consideration  of 
the  bill  which  has  been  reported? 


Mr.  SI  Ml 'SON.  Ivcserving-  the  right  to  object,  1  hope  we  shall  have 
some  t'Npliaialion  of  it. 

MR.  .Mc]\riLLIN.     I  ask  that  the  report  be  read. 

Mr.  HULL.     1  ask  that  the  report  be  read,  which  will  fully  set  it  out. 
The  report  (by  Mr.  Hull)   was  read,  .as  follows: 
*  *  *  *  * 

The  Sl'EAKER.  Is  there  objection  to  the  present  consideration  of  the 
bill? 

Air.  UiS'DEKWOOD.  Mr.  Speaker,  in  consideration  of  the  importance 
of  these  bills,  and  that  I  do  not  think  they  are  of  such  urgent  nature  as 
to  need  to  be  considered  at  once,  believing  that  they  ought  to  be  considered 
in  the  regular  way  and  not  by  unanimous  consent  when  there  is  evidently 
no  quorum  of  the  House  present,  I  shall  be  compelled  to  demand  the 
regular  order. 

The   SPEAKER.     The  gentleman  demands   the  regular  order. 

[Itecord,  pp.  6036.  6037,  June  1, 1895,] 


MR.    UNDERWOOD    (DEM.),    OF   ALA.,    OBJECTS. 

MR.  HULL.  Mr.  Sx^eaker,  I  ask  unanimous  consent  that  Saturday  next 
be  set  apart  for  the  consideration  of  bills  from  the  Committee  on  Military 
Atrairs  which  have  received  the  unanimous  suijport  of  the  committee. 
There  are  four  or  five  bills  that  ought  to  be  considered  at  an  early  day. 
One  pertains  to  the  Inspector-General's  Department,  one  to  the  Ordnance 
Department,  one  to  the  Engineer's  Department,  and  another  bill  that  will 
tix  the  status  of  the  chaplains  of  the  volunteer  regiments.  These  bills 
ought  to  be  considered  and  passed  this  week. 

THE  SPEAKER  pro  tempore.  The  Chair  would  suggei^t  to  the  gentle- 
man that  there  is  already  a  special  order  for  Saturday. 


MR.  HULL.     Well,  I  will  make  the  request  for  next  Tuesday. 

MR.  UXI)1^R\V00D.  ;Mr.  Speaker,  I  am  unwilling  to  give  unanimous 
consent  for  the  consideration  of  bills  that  I  do  not  know  what  they  are 
about,  and  unless  the  gentleman  states  what  they  are,  and  gives  the  House 
an  op]>ortunity  to  know  what  they  are  before  unanimous  consent  is  given, 
I   shall    object. 

MR.  HULL.     I  have  .stated  what  the  bills  relate  to. 

MR.  SULZER.     These  bills  are  all  unanimous  reports  of  the  committee. 

^IR.  GAINES.  Mr.  Speaker,  I  think  it  is  no  more  than  i-ight  and  just 
to  the  House  that  these  bills  should  be  printed  before  unanimous  consent 
is  a.sked  for  consideiation. 

MR.  HULL.  They  are  already  printed.  Mr.  Speaker,  I  ask  unanimous 
consent  that  next  Tuesday  be  assigned  for  the  consideration  of  these  bUls 
unanimously  reported  by  the  Committee  on  Military  A:Sairs. 

MR.  UxNDKiaVOOD.     I  object. 

[Record,  p.  C726,  June  16, 1895.] 


10 

I 

MR.  BARTLETT  (DEM,),  OF  GEORGIA,  OBJECTS. 

Mr.  HULL.    Mr.  Speaker,  I  want  again  to  ask  unanimous  consent  that 
next   Tuesday   be   set   apart   for   the   consideration   of   the   following  bills, 
reported  unanimously  by  the  Committee  on  Military  Affairs — 
*  *    .        »  *  « 

Mr.  McMILLIN.    Is  that  ihe  sai^e  request  that  was  made  this  morning? 

Mr.  HULL.     Yes,  sir. 

Mr.  McMILLlN.  While  I  did  not  object  this  morning,  I  did  state  that 
I  thought  when  this  request  was  made  for  unanimous  consent  for  the 
consideration  of  bills,  that  we  ought  to  be  put  in  possession  of  the  bill 
before  consent  is  given,  so  that  we  should  determine  whether  we  should 
legislate  or  not  by  consent.  I  would  suggest  to  the  gentleman  that  I  do 
not  want  to  stand  in  the  way  of  any  proper  bill,  but  I  do  not  like,  where 
large  increases  are  to  be  made,  for  measures  to  come  up  in  that  way. 

Mr.  HULL.     What  w^as  the  gentleman's  qiiestion? 

Mr.  GAINES.     When  did  the  committee  agree  to  these  bills? 

Mr.  HULL.  The  committee  agreed  on  this  bill  for  the  Inspector-Gen- 
eral's Department  several  daj  s  ago. 

Mr.  BARTLETT.     I  call  for  the  regular  order,  Mr.  Speaker. 

Mr.  HULL.  I  hope  the  gentleman  will  let  us  fix  a  day  for  the  con- 
sideration of  these  bills;  and  I  want  to  read  the  numbers  of  them,  so  that 
members  may  know  what  they  are. 

Mr.  GAINES.  The  reason  why  I  asked  the  question  was  because  my 
colleague  (Mr.  Cox)  has  been  absent  for  ten  days,  so  that  if  any  bills  have 
been  reported  since  that  time,  they  have  not  been  reported  unanimously. 

Mr.  HULL.  Some  of  these  bills  were  agreed  to  since  he  left  and  others 
before  he  left. 

Mr.  BARTLETT.     I  call  for  the  regular  order. 

[Record,  pp.6740,  6741,  June  16, 1898.] 
MR.  BARTLETT  (DEM.),  OF  GEORGIA,  OBJECTS. 

Mr.  HULL.  I  ask  unanimous  consent  that  Thursday,  the  23d  instant. 
be  set  apart  for  the  consideration  of  bills  reported  from  the  Committee 
on  Military  Affairs,  and  that  only  bills  shall  be  considered  which  the  com- 
mittee by  a  vote  have  instructed  the  chairman  to  call  up  for  consideration. 

The  SPEAKER  pro  tempore.  The  gentleman  from  Iowa  asks  unani- 
mous consent  for  the  present  consideration  of  a  resolution  which  will  be 
reported  by  the  Clerk. 

Mr.  BARTLETT.  Reserving  the  right  to  object — I  did  not  hear  the 
resolution.    Let  it  be  read. 

The   SPEAKER   pro   tempore.     Certainly. 

The  Clerk  read  as  follows: 

Resolved,  That  Thursday,  the  23d  instant,  be  set  apart  for  the  consid- 
eration of  bills  reported  from  the  Committee  on  Military  Affairs,  and  tlial 
only   bills   shall   be   considered   which   the   ccmmittee   by   a   vote    have   in- 
structed the  chairman  to  call  up  for  consideration. 
***** 

Mr.  BARTLETT.     If  it  is  to  be  granted  by  unanimous  consent,  T  object. 
[Record,  p.  692:>,  June 20, 181)5., 


11 

MR.    BAIRD    (DEM.),   OF  LOUISIANA,    OBJECTS. 
BUSINESS  OF  THE  COMMITTEE  ON  MILITAKY  AFFAIRS. 
Mr.  HULL.     Mr.  Speaker.  I  wish  to  ask  unanimous  consent  again  to  fix 
next  Tuesday  for  the  consideration  of  bills  reported  from  the  Committee 
on  Military  Affairs,  and  I  will  be  very  glad  to  read  the  numbers  of  the 
bills  and  have  them  placed  in  the  Record,  so  that  all  members  may  know 
what  they  are  and  what  the  committee  proposes  to  call  up  at  that  time. 
They  are  reported  from  the  Committee  on  Military  Affairs  and  are  mainly 
for  the  better  administration  of  the  Army  during-  present  conditions;   they 
are  recommended  by  the  Secretary  of  War  and  are  necessary  for  the  suc- 
cessful prosecution  of  the  business  of  the  war.     Their  passage  is  impera- 
tively demanded  in  the  interest  of  both  efficiency  and  economy. 
Mr.  BAIRD  objected. 

[Record,  p.  7032,  June  23, 1898.J 

"IT  IS  SIMPLY  ANOTHER  STEP  IN  THE  SCHEME  OF  CENTRALIZA- 
TION, WHICH  THIS  EMERGENCY  IS  BEING  USED  TO  PROMOTE."— 
Mr.  Maguire  (Dem.),  of  California. 

MR.  CANNON.  Mr.  Speaker,  I  desire  to  report  from  the  Committee 
on  Appropriations,  with  favorable  recommendation,  and  ask  that  it  be  con- 
sidered at  this  time —  vs^hich  will  take  but  a  minute  or  two,  I  presume — a 
matter  which  I  send  to  the  desk.     I  refer  to  Senate  joint  resolution  No.  129. 

THE  SPEAKER.     The  joint  resolution  will  be  read. 

The  joint  resolution  was  read,  as  follows: 

Joint  resolution  (S.  129)  relative  to  suspension  of  part  of  section  355  of 
Revised  Statutes,  relative  to  erection  of  forts,  fortifications,  etc. 

Resolved  by  the  Senate  and  Hotise  of  Representatives  of  the  United  States 
of  America  in  Congress  assembled,  That  in  case  of  emergency,  when,  in 
the  opinion  of  the  President,  the  immediate  erection  of  any  temporary  fort 
or  fortification  is  deemed  important  and  urgent,  such  temporary  fort  or 
fortification  may  be  constructed  upon  the  written  consent  of  the  owner  of 
the  land  upon  which  such  work  is  to  be  placed;  and  the  requirements  of. 
section  355  of  the  Revised  Statutes  shall  not  be  applicable  in  such  cases. 

MR.  BAILEY.     Mr.  Speaker,  is  this  presented  as  a  matter  of  privilege? 

THE  SPEAKER.  It  is  presented,  as  the  Chair  understands,  for  the 
unanimous  consent  of  the  House. 

MR.  BAILEY.  WELL,  MR.  SPEAKER,  BEFORE  ANY  OTHER  PREPA- 
RATIONS FOR  WAR  ARE  JNIADE,  I  WANT  TO  KNOW  WHETHER  WE 
APiE  GOING  TO  HAVE  WAR.  I  OBJECT  TO  THE  IMMEDIATE  CON- 
SIDERATION OF  THE   RESOLUTION. 

THE  SPEAKER.  Objection  is  made  to  the  consideration  of  the  resolu- 
tion at  this  time. 

MR.  CANNON.  Then  let  the  bill  take  its  place  on  the  Calendar.  Or  I 
move,  if  I  may  be  recognized  for  that  purpose,  to  suspend  the  rules  and 
pass  the  bill. 

THE  SPEAKER.  The  gentleman  from  Illinois  moves  to  suspend  the 
rules  and  pass  the  resolution,  which  will  be  again  reported. 

The  resolution  was  again  reported 

MR.  BAILEY.    I  demand  a  second. 


1- 

"MR.  McMILLTN.  Let  us  have  the  resolution  read  ag^ain.  There  was  so 
much  confusion  that  it  was  impossible  to  hear  it,  and  I  ask  that  there  be 
Older  while  it  is  being  read. 

The  resolution  in  the  absence  of  objection  was  again  reported. 

yill.  CANNON.  "Will  Ihe  gentleman  from  Texas  agree  that  a  second 
may  be  considered  as  ordered? 

ME.  BAILEY.     I  have  no  objection  to  that. 

THE  SPEAKER.  In  the  absence  of  objection,  a  second  will  be  con- 
sidered as  ordered. 

There  was  no  objection. 

MR.  CANNON.  Now,  Mr.  Speaker,  I  do  not  desire  to  do  anything  in 
the  waj'  of  the  discussion  of  this  matter  except  to  have  the  following  letter 
read  from  the  Chief  of  Engineers,  and  will  then  call  attention  to  the  section 
of  the  statute  which  is  proposed  to  be  suspended. 

The  Clerk  read  as  follows: 

Office  of  the  Chief  of  Engineers, 

United  States  Army, 
Washington,  D.  C,  Ma^'ch  26,  1*898. 
Itlr.  Secretary:  Section  355,  Revised  Statutes,  prohibits  the  expenditure 
of  any  public  money  for  forts,  fortifications,  etc.,  upon  any  site  or  land  pur- 
chased by  the  United  States  until  the  written  opinion  of  the  Attorney-Gen- 
eral shall  be  had  in  favor  of  validity  of  title  and  consent  of  legislature  of 
State  in  which  land  may  be  to  such  purchase  has  been  given. 

I  have  the  honor  to  suggest,  in  view  of  the  present  emergency,  that 
Congress  be  requested  to  temporarily  susi)end  this  act  during  time  of  war, 
as  there  are  important  points  on  our  seacoast  where  it  will  be  absolutelj' 
necessary  to  erect  temporary  works  immediately  in  case  war  should  be  de- 
clared and  funds  are  available. 

"\^ery  res]}ectfully,  your  obedient  servant, 

JOHN  M.  WILSON, 
Brigadier-General,  Chief  of  Engineers,  U.  S.  A. 
Hon  R.  A.  Alger,  Secretary  of  War. 
Approved. 

R.  A.  ALGER,  Secretaiy  of  War. 
March  31,  1898. 

MR.  CANNON.  The  Senate  passed  the  resolution  which  was  read  a  iew 
minutes  ago.    I  ask  the  Clerk  to  read  that  resolution  again. 

The  resolution  was  again  read. 

MR.  CANNON.     Mr.  Speaker— 

MR.  McMILLIN.  Mr.  Speaker,  before  the  gentleman  begins,  I  will 
call  his  attention  to  the  fact  that  the  resolution  does  not  make  any  limita-- 
tion  upon  the  time  witlwn  which  it  shall  oi)erate.  It  strikes  me  that  if 
this  is  an  emergency  resolution, it  ought  not  to  be  perj)etual  in  its  operation. 

MR.  CANNON.  It  has  the  emergency  clause  in  it — in  cases  of  emerg- 
ency. 

Mr.  McMILLIN.  But  you  leave  it  entirely  to  the  discretion  of  the 
Executive  to  determine  when  an  emergency  exists. 

Mr.  CANNON.  In  the  discretion  of  the  President;  that  a  temporary 
fort  or  fort,incation  may  be  built  if  in  the  judgment  of  the  President  an 
emergency  exi.sts.     Now,   this  is  an   amendment  of  the  law   covering  such 


13 

cases,  and  the  law  ought  to  be  that  permanently.  It  ought  always  to  have 
been  that. 

This  matter  was  very  fully  considered  and  inquiry  was  made  by  the 
sub-committee  of  which  the  gentleman  from  Texas  (Mr.  Sayers)  is  a  mem- 
ber, and  after  consideration  we  believed  it  our  duty  to  report  this  bill 
with  a  favorable  recommendation. 

Mr.  MAGUIRE.  When  do  you  understand  that  operations  could  be 
commenced  under  this  resolution,  if  it  should  pass? 

Mr.  CANNON.    Oh,  at  once;  wherever  it  is  necessary. 

Mr.  MAGUIKE.  Then,  if  oj^eratious  may  commence  in  time  of  perfect 
peace,  when  will  they  cease,  under  the  language  of  the  law? 

Mr.  CANNON.  If  this  law  is  passed,  it  will  go  into  effect  as  permanent 
law. 

Mr.  MAGUIRE.     That  is  what  I  thought. 

Mr.  CANNON.  Modifying  section  355  of  the  Kevised  Statutes  so  that  in 
cases  of  emergency  the  President  shall  have  discretion  to  erect  temporary 
forts  and  fortifications  without  awaiting  the  cession  of  jurisdiction  by  the 
legislature  or  the  acquirement  of  title,  only  requiring  that  in  such  cases 
of  emergency,  for  the  erection  of  such  temporary  fortifications  or  forts, 
he  shall  have  the  written  assent  of  the  owner  of  the  land. 

Mr.  MAGUIRE.  But  the  President  is  permanently  empowered,  so  long 
as  this  law  stands,  to  be  the  judge  of  what  constitutes  an  emergency 
requiring  such  action. 

Mr.  CANNON.  Precisely,  as  the  law,  in  the  opinion  of  your  committee, 
ought  to  be. 

Mr.  LENTZ.  I  desire  to  offer  an  amendment  that  will  cover  that 
ground. 

Mr.  CANNON.  There  is  no  ameiulnient.  The  motion  is  to  suspend 
the  rules  and  pass  the  bill. 

«  •  •  •  • 

Mr.  CANNON.  No;  I  caai  not  do  that  under  the  motion.  (Cries  of 
"Vote."     "Vote!") 

Mr.  BAILEY.  Mr.  Speaker,  I  simply  desire  to  call  the  attention  of  the 
House  to  the  fact  that  on  several  occasions  within  the  last  thirty  days 
this  House  has  been  called  upon  to  vote  appropriations  and  permissions 
to  meet  extraordinary  cases,  and  yet  this  House  is  not  in  the  possession 
of  any  facts  which  warrants  it  in  supposing  that  the  executive  depart- 
ment believes  that  any   extraordinary   emergency   is   upon   the   country. 

Only  a  short  time  ago  we  were  comi)elled  to  vote  to  place  $50,000,000 
under  the  absolute  discretion  of  the  President  of  the  United  States.  The 
situation  at  that  time  appeared  so  critical  that  no  gentleman  on  this  side 
was  willing  to  resist  that;   and  we  all  voted  for  it. 

Mr.  AENOLD.     Mr.  Speaker,  a  point  of  order. 

The  SPEAKER.    The  gentleman  will  state  it. 

Mr.  ARNOLD.     Is  this  motion  debatable?  ^ 

The  SPEAKER.     Quite  so. 

Mr.  BAILEY.  It  is,  for  twenty  minutes  on  a  side.  I  voted  for  that 
measure  because  I  believed  then   that  we  were  on  the  perilous   edge  of 


14 

war.  Nothing'  less  than  that  could  have  justified  it.  1  will  go  further.  1 
do  IK  t  liesitate  to  declare  that  if  a  Democratic  President  had  asked  a 
Democrat  House  for  the  absolute  control  of  $50,000,000  I  would  have  denied 
it.  I  would  have  said  to  him,  "Send  in  3'our  estimates  and  let  Congress 
judge  whether  that  money  of  the  people  ought  to  be  expended  or  not." 
Those  in  power  did  not  see  fit  to  require  such  a  course,  and  believing  that 
a  war  was  imminent  the  minority  did  not  hesitate  to  vote  for  a  proposition 
which,  if  our  position  with  the  majority  had  been  reversed,  we  would  never 
have  asked  them  to   support. 

It  is  many  days  since  we  iijipropriated  that  $50,000,000,  and  much  of  it 
has  been  spent,  yet  the  House  has  no  knowledge  of  the  manner  in  which 
it  has  been  spent. 

Again  to-day  we  are  asked  to  meet  an  emergency.  What  are  the  cir- 
cumstances? Last  Wednesday,  when  this  House  was  called  upon  to  meet 
a  vital  question,  and  to  take  decisive  action  upon  it,  the  majority  refused 
to  meet  it,  and  refused  to  take  that  action. 

They  declared  that  the  question  was  soon  to  be  settled.  Everywhere 
they  asserted  that  to-day  the  President  of  the  United  States  would  be 
ready  to  inform  Congress  of  the  state  of  his  negotiations  with  Spain.  The 
House  was  adjourned  from  Friday  until  to-day  to  give  the  President  time 
and  opportunity  to  prepare  his  message.  The  hour  that  such  messages 
usually  reach  this  House  has  passed,  and  every  well-informed  man  on  both 
sides  of  the  House  knows  no  message  will  come  from  the  President  to- 
day. Now,  Mr.  Speaker,  it  seems  to  me  important  that  the  country  shall 
understand  what  Congress  is  doing  and  intends  to  do. 

It  seems  to  me  equally  important  that  this  House  shall  know  what 
the  executive  department  is  doing  and  intends  to  do.  We  ought  not  to  be 
asked  day  after  day  and  week  after  week  to  provide  for  an  emergency 
which  gentlemen  on  that  side  believe  has  either  passed  or  never  existed. 
I  am  ready,  and  every  gentleman  on  this  side  of  the  Chamber  is  ready,  to 
sustain  the  Administration  in  every  proper  measure  to  prepaie  for  war. 
We  are  ready  and  eager  to  vote  for  e,\ery  measure  which  may  be  necessary 
to  conduct  that  war  to  a  glorious  and  successful  termination.  (Loud  ap- 
plause on  the  floor  and  in  the  galleries.) 

The  SPEAKER.  One  moment.  The  gentleman  will  suspend.  The 
Chair  desires  to  say  that  the  gallery  must  preserve  order.  It  is  not  suitable 
that  there  should  be  expressions  of  either  approval  or  disappi'oval.  People 
who  are  occupying  the  gallery  are  occupying  it  as  spectators. 

Mr.  BAILEY.  Mr.  Speaker,  these  galleries  are  but  the  American  people 
in  miniature;  and  if  this  Congress  could  face  the  people  they  would  hear 
a  condemnation  infinitely  more  overwhelming  than  that  which  comes  from 
the  galleries  of  this  House.  (Applause  on  the  Democratic  side  and  further 
manifestations  of  applause  in  the  gallery.) 

The  SPEAKER.  The  Chair  will  be  obliged,  if  there  is  applause  in  the 
gallery,  to  clear  the  gallery  of  the  Hoiise. 

Mr.  STEELE.  I  think  that  is  hardly  fair,  in  view  of  the  fact  that  the 
gentleman  is  talking  to  the  galleries.  (Laughter  and  applause  on  the  Re- 
publican sid^.) 


15 

The  SPEAKER.     The  Chair  cannot  interfere  with  members. 

Mr.  BAILEY.  I  mijTht  as  well  speak  to  the  galleries,  for  when  I 
speak  to  that  side  of  the  Honse  I  appeal  to  deaf  ears  and  hardened  con- 
sciences. (Applause  on  the  Democratic  side.)  I  am  not  seeking  to  excite 
or  exaggerate.  I  am  refraining  from  it;  but  I  am  simply  stating  to  the 
majority  of  this  House  that  they  have  trifled  with  the  minority  and  the 
country  too  long. 

I  say  now,  and  after  I  have  said  that  I  reserve  the  remainder  of  my 
time,  that  if  the  President  wants  one  day,  or  two  days,  or  three  days  to 
prepare  a  miessage  that  will  be  approved  by  the  American  people  we  will 
be  silent  until  he  sends  it  here,  but  if  the  President  of  the  United  States 
wants  two  days,  or  if  he  wants  two  hours,  to  contin\ie  negotiations  with 
the  butchers  of  Spain,  we  are  not  ready  to  give  him  a  minute  longer  for 
that  purpose.     (Loud  applause.) 

Mr.  CANNON.  I  believe  I  have  the  right  to  close,  and  as  I  want  not 
more  than  two  or  three  minutes,  I  will  ask  the  gentleman  to  consume 
some  more  of  his  time. 

Mr.  BAILEY.  I  yield  three  minutes  to  the  gentleman  from  California 
(Mr.  Maguire). 

Mr.  MAGUIRE.  Mr.  Speaker,  in  reply  to  my  question,  a  few  moments 
ag-o,  the  gentleman  from  Illinois  (Mr.  Cannon)  stated  that  the  pending 
measure  is  not  intended  to  meet  a  present  emergency  and  that  its  effect 
is  not  confined  to  times  of  actual  war.  It  makes  a  permanent  change  in 
the  law,  giving  unusual  power  to  the  President  of  the  United  States  to 
put  the  countrj'^  on  a  war  footing  at  his  discretion.  It  seems  to  me  that 
we  have  gone  far  enough  in  that  direction.  We  have  gone  far  enough  toward 
abdicating  of  the  constitutional  power  of  Congress  to  declare  war,  to  pro- 
vide for  the  common  defense,  and  to  regulate  the  land  and  naval  forces 
of  the  United  States. 

I  am  willing  to  vote  for  a  resolution  putting  such  power  in  the  hands 
of  the  Chief  Executive  temporarily  in  time  of  war;  but  I  insist  that  such 
extraordinary  power  should  be  confined  to  times  of  actual  war.  My  under- 
standing of  the  existing  law  is  that  the  President  now  has  this  very 
power  in  times  of  war,  so  that  the  purpose  of  the  resolution  is  taking 
advantaj^e  of  the  present  war  scare  to  clothe  him  with  this  important 
power  in  times  of  peace.  To  this  I  am  opposed.  It  is  simply  another  step 
in  the  scheme  of  centralization  which  this  emergency  is  being  used  to 
promote.  A  few  days  ago  we  appropriated  $50,000,000  of  public  money  to 
l)e  expended  by  the  President  independently  of  Congress  and  without  re- 
quiring any  specilic  statement  of  even  the  emergency  which  it  was  intended 

to  meet. 

*  •  «  »  • 

Mr.  HOPKINS.  Now,  does  the  gentleman  believe  that  the  Chief  Execu- 
tive should  point  out  in  advance  what  he  is  going  to  do  before  any  hostili- 
ties commence,  or  is  it  not  better  to  make  preparations  for  these  fortifica- 
tions without  doing  it  with  brass  bands? 

Mr.  MAGUIRE.  In  times  of  war  s^e  should  not  be  required  to  point 
out  iu  advance  what  he  is  going  to  do,  but  in  times  of  peace     and  we  are 


16 

assured  by  our  Chief  Executive  that  these  are  times  of  peace — ^he  should 
not  be  made  a  dictator  and  should  not  be  given  absolute  power,  independ- 
ently of  Congress,  to  do  that  which  the  Constitution  of  the  United  States 
expressly  commits  to  Congress.  All  provisions  for  the  national  defense 
to  be  made  in  times  of  peace  should  be  made  upon  recommendations  of 
the  Chief  Executive  by  specific  appropriations  voted  by  Congress  for  definite 
purposes.  That  is  what  I  contend  for.  If  this  legislation  is  necessary 
to  meet  the  exigencies  of  presently  imminent  war,  let  it  be  so  frankly 
stated,  and  let  the  legislation  be  limited  to  the  occasion. 

[Record,  p.  3900.] 


Mr.  CANNON.  It  is  reported  from  the  committee.  Now,  I  want  to 
make  just  two  observations;  then  I  will  yield  to  one  or  two  gentlemen,  and 
then  ask  a  vote. 

Mr.  Speaker,  there  is  a  time  for  speech  and  a  time  for  silence.  There 
is  a  time  for  action.     What  is  this  resolution? 

To  permanently  change  the  law  as  it  ought  to  have  always  been,  and 
give  to  the  President  in  times  of  emergency,  at  his  discretion,  power, 
under  the  written  consent  of  the  owner  of  the  land,  without  waiting  for 
a  cession  of  jurisdiction  on  the  part  of  the  legfislature,  or  waiting  for 
a  perfect  abstract  of  title,  to  build  temporary  forts  or  fortifications.  What 
for?  Take  the  harbor  of  New  York,  or  a  hai-bor  of  our  Southern  ports, 
anywhere  on  our  10,000  miles  of  seacoast,  that  the  President  may  make 
a  temporary  fortification,  and  that  moneys  that  may  be  available  for  the 
public  defense  may  be  so  used.  That  is  all  there  is  in  the  resolution. 
It  is  proposed  permanently,  forever  and  a  day,  to  make  it  a  permanent 
law,  unless  this  or  some  other  Congress  shall  change  the  law  or  repeal  it. 

Mr.  BAILEY.  Will  the  gentleman  say  to  the  House  just  what  is  in- 
tended and  whether  this  proposition  is  designed  to  meet  a  present  emer- 
gency? 

Mr.  CANNON.  The  "gentleman  from  Illinois"  will  give' the  ground  for 
the  opinion  he  entertains. 

A  MEMBER.     That  is   an  excellent  answer. 

Mr.  CANNON.  And  I  will  not  have  to  get  away,  in  giving  that  answer, 
from  what  is  the  fact. 

Mr.  UNDEllWOOD.  Will  the  gentleman  from  Illinois,  before  he  leaves 
this  question,  state  the  substance  of  the  proposition  which  he  now  sub- 
mits to  the  House? 

Mr.  Cannon.  I  have  done  so  twice  but  I  will  do  so  again  for  the 
information   of  the  House. 

Unless,  Mr.  Speaker,  the  statute  is  changed  there  can  be  no  fortifica- 
tion erected  on  points  of  land  necessary  for  the  public  defense  now  owned 
by  private  persons  until  the  Government  obtains  a  perfect  title,  and  until 
the  legislature  of  the  State  having  jurisdiction  shall  have  been  assembled 
and  has  taken  action  in  the  premises. 

Now,  we  know  that  this  will  take  from  six  months  to  twelve  months, 
or  even  five  years.    There  is  no  knowing  how  long  it  may  take. 


17 

Mr.  UNDERWOOD.  Does  the  g-entleman  from  Illinois  mean  to  say 
that  they  can  not,  in  time  of  war,  take  such  steps  as  are  contemplated 
in  this  resolution?    This,  as  I  understand,  is  a  wax  measure. 

Mr.  CANNON.  It  can  not  be  done  in  time  to  meet  hostilities  which 
may  be  forced  upon  us  at  any  moment;  amd  I  think  with  all  due  respect 
to  the  gentleman  from  Texas,  who  seems  to  be  departing  from  his  usual 
good  judgment  for  the  purpose  of  posturing,  and  taking  a  position  on 
this  question,  it  seems  to  me  that  he  could  well  have  ag^reed  at  this  time 
to  meet  an  occasion  which  might  arise,  before  we  are  actually  called  on 
to  take  steps  which  may  be  necessary  under  the  conditions  which  con- 
front us. 

I  am  talking  business  now,  and  the  gentleman  from  Texas  is  simply 
posturing  before  the  galleries  and  the  country.  I  want  action  to  properly 
defend  the  country  in  case  of  war. 

Mr.  UNDERWOOD.  I  would  like  to  ask  the  gentleman  from  Illinois 
if  the  conference  committee  on  the  fortification  apppropriation  bill  is  not 
resisting  the  increase  made  by  the  Senate  on  that  bill  for  the  construc- 
tion of  new  fortifications  even  at  this  very  time? 

Mr.  CANNON.  Oh,  Mr.  Speaker,  the  gentleman  is  trying  to  fight  a 
man  of  straw.  The  President  of  the  United  States  has  authorized  to  be 
spent  seven  and  a  half  millions  to  perfect  the  fortifications,  under  the 
emergency  appropriation  heretofore  made,  and  can  expend  $20,000,000 
more  if  necessary.  The  gentleman,  like  a  cuttlefish,  is  trying  to  muddy 
the  water  so  as  to  obscure  the  real  issue. 

[Uecord.p.  »«y6  to  3900,April4, 1898.] 

K    <♦»■  »< 

INTERVENTION   IN  CUBAN  AFFAIRS. 

SENATE,    TUESDAY,   Al'RlL    19,    1808. 
IVfR.  DAVIS  (at  1  o'clock  and  15  minutes  a.  m.,  Tuesday,  April  19,  1898). 
Mr.  President,  on  behalf  of  the  committee  of  conference  I  submit  a  con- 
ference report. 

The  report  was  read,  as  follows: 

The  committee  of  conference  on  the  disagreeing  votes  of  the  two  Houses 
on  the  amendments  of  the  House  of  Representatives  to  the  amendment  of 
the  Senate  to  the  joint  resolution  (H,  Res.  233)  authorizing  and  directing 
the  Pi-esident  of  the  United  States  to  intervene  to  stop  the  war  in  Cuba, 
and  for  the  purpose  of  establishing  a  stable  and  independent  government  of 
the  people  therein,  having  met,  after  full  and  free  conference  have  agreed 
to  recommend,  and  do  recommend,  to  their  respective  Houses  as  follows: 
That  the  Ho\ise  recede  from  its  amendment  numbered  1,  in  line  1,  strik- 
ing out  the  words  "are,  and." 

That  the  Senate  recede  from  its  disagreement  to  the  amendment  of  the 
House  numbered  2,  in  line  2,  to  strike  out  all  after  the  word  "independent" 
to  and  including  the  word  "Island,"  in  line  4;  and  agree  to  the  same. 

That  the  Senate  recede  from  its  disagreement  to  tlie  amendment  of 
the  House  to  the  title  of  the  resolution  omitting  in  line  2  thereof  the  words 
"and  Republic;"  and  agree  to  the  sajme. 

C.  K.  DAVIS, 
J.  B.  FORAKER, 
Managers  on  the  part  of  the  Senate. 
ROBERT  ADAMS,  Jr., 
JOEL  P.  HEATWOLE, 
Managers  on  the  part  of  the  House. 


18 

ME.  COCKRELL.     I  move  to  disagree  with  the  conference  report.  *  *  * 

The  VICE-PRESIDENT.  The  question  is,  Shall  the  report  be  agieed  to? 
on  which  the  yeas  and  nays  have  been  ordered.  The  Secretary  will  call  the 
roll. 

The  Secretary  proceeded  to  call  the  roll. 

The  result  was  ajinounced — yeas  42,  nays  35;  as  follows: 

YEAS— 42. 
Aldrich,  Allison,  Baker,  Burrows,  Carter,  Chandler,  Clark,  Cullom,  Da- 
vis, Deboe,  Elkins,  Fairbanks,  Faulkner,  Foraker,  Frye,  Galling-er,  Gear, 
Gray,  Hale,  Hanna,  Hansbroug-h,  Hawley,  Kyle,  Lodg-e,  McBride,  McMillan, 
Mason,  Morgan,  Morrill,  Nelson,  Penrose,  Perkins,  Piatt,  Conn.,  Pritchard, 
Proctor,  Quay,  Sewell,  Shoup,  Spooner,  Warren,  Wilson,  Wolcott. 

NAYS— 35. 
Allen,  Bacon,  Bate,  Berry,  Butler,  Caffery,  Cannon,  Chilton,  Clay,  Cock- 
rell,   Daniel,   Harris,   Heitfeld,   Jones,   Ark.,   Jones,   Nev.,   Kenney,    Lindsay. 
McEnery,  McLaurin,  Mallory,  Mantle,  Martin,  Mitchell  Money,  Pasco,  Petti- 
grew,  Pettus,  Rawlins  Roach,  Stewart,  Teller,  Turley,  Turner,  Turpie,  White. 

NOT  VOTING— 12. 
Gorman,  Hoar,  Mills,  Murphy.   Piatt,  N.  Y.,  Smith,  Thurston,  Tillman, 
^'est,  Walthall,  Wellington,  Wetmore. 

So  the  report  was  agreed  to. 

*  *  »  •  • 

Mr.  COCKRELL.  I  have  never  believed  a  word  of  the  rumors  that  were 
circulated  all  around  here  that  if  we  passed  the  joint  resolution  with 
the  clause  in  it  recognizing  the  independence  of  the  Republic  of  Cuba, 
President  William  McKinley  would  veto  it.  I  think  it  was  done  by  his  in- 
discreet friends  for  the  purpose  of  whipping  in  those  who  were  not  dis- 
posed to  follow  their  recommendations  and  their  policies,  not  those  of  the 
President. 

But  now  let  us  come  back  to  the  policy  of  the  President  and  see  what 
it  was. 

THIBTY-FIVE  DEMOCRATS  VOTING  "NAY." 

Mr.  HALE.     Will  the  Senator  allow  me? 

The  PRESIDING  OFFICER.     Does  the  Senator  from  Missouri  yield? 

Mr.  COCKRELL.     Certainly;   as  a  matter  of  course. 

Mr.  HALE.  I  do  not  want  to  prolong  the  discussion,  but  before  the 
Senator  sits  down  I  should  like  to  have  him  answer  this  question:  Why. 
on  the  proposition  which  passed  the  Senate,  the  first  of  which  resolved  that 
the  people  of  the  Island  of  Cuba  are,  and  of  right  ought  to  be,  free  and 
independent;  on  the  second,  which  demands  the  withdrawal  of  the  Spanish 
forces  and  the  abandonment  of  Cuba;  on  the  third,  which  authorizes  the 
President  to  use  the  Army  and  Navy  to  that  end,  and  on  the  fourth,  which 
repudiates  the  theory  of  annexation — why  was  it  that  on  the  roll  call  on 
those  resolutions,  covering  such  broad  grounds  of  immediate  action  toward 
the  independence  of  Cuba,  thirty-five  Democrats  were  found  almost  in 
solid  rank  voting  "nay?"  I  wish  the  Senator  would  explain  that.  I  can 
understand  that  the  Senator  is  sensitive  and  that  his  associates  are  sen- 
sitive overnight. 


Mr.  COCKBEIiL.  Not  a  bit  of  it.  I  never  rejoiced  more  in  my  life 
over  any  vote  I  ever  cast  than  the  vote  I  cast  hist  night.  1  am  glad  of  it, 
and  it  vsrill  stand  as  a  monument  of  my  devotion  to  the  interests  of  a 
strugg-ling  people  for  a  free  and  independent  government  in  answer  to 
Iheir  appeals  to  the  oldest  Republic  in  the  world,  vv^hich  apj)etil  I  am  sorry 
lias  been  unheeded. 

Mr.  HALE.  I  want  the  Senator  before  he  sits  down  to  explain  the 
reasons,  why,  when  it  was  apparent  that  that  was  all  that  could  be  done, 
and  also  in  the  view  that  afterwards  his  associates  in  another  body  took 
the  ground  of  voting  for  these  resolutions,  and  did  it — 

Mr.  COCKRELL.     The  questions  were  entirely  difEerent. 

Mr.  HALE.  Why  did  the  thirty-five  Democrats  who  voted  against 
these  resolutions  and  would  not  piit  themselves  on  record  in  favor  of  them 
take  that  attitude  and  seek  to  prevent  any  action  ? 

Mr.   TlLlvMAN.     Mr.   rresidcnt— 

Mr.  COCKRELL.  Wait  a  minute.  I  will  answer  the  Senator  from 
Maine  myself. 

SENATORS  CLAMORING  FOR  WAR  VOTING  "NO." 

Mr.  HALE.  1  did,  in  a  speech  made  on  Saturday  last,  which  has  been 
alluded  to  and  which  has  aroused  some  trouble,  make  a  little  forecast, 
and  that  was  that  I  PREDICTED  THAT  THE  SENATORS  WHO  HAD 
BEEN  CLAMORING  FOR  WAR,  CLAMORING  FOR  ACTION,  WHO  WERE 
DENOUNCING  THE  PRESIDENT,  AND  IN  SOME  GASES— not  the  Senator 
from  Missouri  himself— ABUSING  THE  PRESIDENT,  ERE  LONG  WOULD 
BE  FOUND  VOTING  "NO"  AND  OBSTRUCTING  THE  MOVEMENT. 

J  did  not  expect  a  realization  to  come  so  soon  as  Monday  night.  I  did 
not  exjiect,  when  we  had  come  to  resolutions  that  covered  every  ground 
liut  one,  that  meant  immediate  intervention  and  freedom  for  Cuba  and 
the  interposition  of  the  armies  and  navies  sf  the  United  Sta,tes — I  DID  NOT 
QUITE  THINK  THAT  SO  SOON  AS  MONDAY  NIGHT  WE  WOULD  FIND 
ALMOST  THE  SOLID  DEMOCRATIC  PARTY  VOTING  "NO."  IT  CAME 
SOONER  THAN  I  EXPECTED,  AND  1  WAS  A  BETTER  PROPHET  THAN 
I  SUPl'OSED  MYSELF  TO  BE. 

Mr.  TILLMAN.     Will  the  Senator  allow  me? 

Mr.  COCKRELL.  I  will  yield  to  the  Senator  from  South  Carolina  for 
just  a  minute. 

Mr.  TILLMAN.  I  want  to  ask  the  Senator  from  Maine  a  question. 
Does  he  claim  any  part  or  parcel  in  the  iiaternity  of  the  resolutions  which 
were  passed  last  night? 

Mr.   HALE.     I  certainlj'  helped   to  pass  them. 

Mr.  TILLMAN.     After  you  had  fought  them  for  four  days. 

Mr.  HALE.  After  I  had  fought  for  the  freedom  of  Cuba  without  the 
scheme  of  recognition  being  added   to  %}xe  resohitiops, 


20 

Mr.  COCKRELL.  If  the  Senator  wants  to  ask  me  a  question,  I  will 
answer,  but  I  am  not  going  to  have  other  Senators  interject  their  speeches 
into  mine.  There  is  plenty  of  time,  and  we  have  nothing  else  to  do  but 
to  talk  about  this  question.  Remember,  I  never  occupied  a  minute  of 
the  time  of  the  body  on  this  question  when  it  was  important  to  have 
prompt  action;  but  it  has  now  passed,  and  we  can  talk  as  much  and  as 
long  as  we  please. 

Mr.  HALE.  If  the  Senator  does  not  yield,  I  will  not  insist  on  putting 
questions  to  him. 

Mr.  COCKRELL.    I  am  always  glad  for  a  question,  but  not  for  a  speech. 

Mr.  SPOONER.  I  want  to  appeal  to  my  friend  from  Maine  (Mr.  Hale) 
that  he  should  not  interject  any  remarks  of  his  into  any  political  speech 
of  the  Senator  from  Missouri.    It  is  not  fair. 

Mr.  HALE.  I  think  there  is  something  in  that.  I  was  going  to  answer 
the  Senator  from  South  Carolina  (Mr.  Tillman),  but  if  the  Senator  from 
Missouri  (Mr.  Cockrell)  desires  to  go  on,  as  the  Senator  from  Wisconsin 
(Mr.  Spooner)  has  suggested,  and  complete  his  exculpatory  speech,  his 
political  speech,  I  shall  not  intervene. 

Mr.  COCKRELL.  I  do  not  care  a  continental  cent  whether  you  call 
it  a  political  speech  or  not.    I  am  not  hidebound. 

Mr.  HALE.     I  think  the  Senator  from  Wisconsin  is  probably  correct. 

Mr.  COCKRELL.  I  want  you  to  understand  distinctly  that  I  am  a 
Democrat;  that  I  believe  in  the  cardinal,  imperishable,  and  monumental 
principles  of  that  oldest,  grandest,  and  noblest  of  all  political  organizations 
that  has  ever  existed  on  American  soil — the  Democratic  party. 

Mr.  HALE.    X  thought  so. 

•  «  •  «  • 

l&Mord,  pp.  4461  and  4i88.J 


(No.  5.) 


TARIFF,  MONEY 


AND 


History  of  Financial   Legislation  in  the 
United  States 


SPEECH  OP 


Hon.  J.  W.  Babcgck 


of  Wisconsin 


IN  THE  HOUSE  OF  REPRESENTATIVES,  MONDAY,  JULY  19th,  1897 


SPEECH    OH 

Hon.  J.  W.  Babcock 

of  Wisconsin 

In  the  House  of  Representatives,  Monday,  July  19th,  1897 


The  House  having  under  consideration  the  conference  report  on  the  bill 
(H.  R.  379)  to  provide  revenue  for  the  Government  and  to  encourage  the 
industries  of  the  United  States — 

Mr.  BABCOCK  said: 

PREDICTIONS   REALIZED. 

Mr.  Speaker:  Something  over  a  year  ago  I  ventured  the  prediction  in 
this  place  that  free  coinage,  except  by  international  agreement,  when  prop- 
erly understood  by  the  people,  would  be  unable  to  maintain  itself  at  the 
polls  in  a  fair  contest  of  American  intelligence,  and  I  furthermore  ventured 
to  predict  that  the  advocates  of  this  interest  could  not  bar  the  Fifty-fifth 
Congress  from  enacting  such  wise  protective-tariff  laws  as  would  furnish 
ample  revenue  for  the  needs  of  the  Government  and  protection  to  all  the 
great  agricultural,  laboring,  and  industrial  interests.  Both  of  these  pre- 
dictions have  been  realized,  and  I  am  now  here  to  add  to  my  forecast  of 
events  the  further  prediction  that  the  era  of  prosperity,  so  long  delayed 
by  the  result  of  four  years  of  maladministration  by  the  Democratic  party  in 
all  branches  of  the  Government,  will  soon  be  upon  us  in  all  its  fullness,  and 
will  be  felt  in  every  home  and  hamlet  of  the  United  States. 

None  but  those  selfishly  or  constitutionally  organized  to  find  fault  and 
to  obscure  the  clear  vision  of  the  American  people  to  the  future  can  deny 
that  the  pulse  strokes  of  a  healthy  revival  of  confidence  and  business  energy 
have  already  manifested  themselves,  and  that  the  vigorous  constitution  of  the 
country -is  rapidly  shaking  off  the  effects  of  the  past  four  years  of  free  trade, 
free-coinage  agitation,  and  bond  sales,  which  fastened  a  new  taxation  of 
$262,330,692  upon  the  workingmen  and  business  interests  of  the  country. 

AN  ERA  OF  CHEAP  THINGS. 

It  has  been  a  typical  era  of  "cheap  things,"  putting  the  farmer  and  the 
laborer,  the  mechanic  and  the  small  business  men,  in  the  condition  of  being 
hardly  able  to  provide  the  comforts,  often  the  necessities,  of  life  with  the 
cheapened  proceeds  of  their  industry.  We  have  learned  the  bitter  lesson,  I 
think,  that  cheap  goods  mean  cheap  labor.  We  have  tried  four  years  of 
Democratic  tariff  policy,  and  it  has  nearly  put  our  workingmen  on  a  par 
with  the  pauper  labor  of  Europe. 

Under  Republican  tariff  laws,  during  the  period  from  the  1st  of  Septem- 
ber, 1865,   up  to  the  time  President  Cleveland  was   inaugurated   in   1893 — 


twenty-seven  and  one-half  years — the  Government  debt  and  obligations  were 
reduced  $1,881,367,873,  or  an  average  of  $68,632,000  per  year.  Ihe  per  capita 
debt  in  1865  was  $78.  In  1893  it  had  been  reduced  to  $12.55.  This  is  cer- 
tainly a  fair  showing,  for  it  covers  the  whole  period  from  the  close  of  the 
war  until  the  Democrats  secured  full  control  of  all  branches  of  the  Govern- 
ment. Notice  the  great  diiTerence  between  the  financial  policies  of  the  two 
parties.  Since  the  1st  of  March,  1893,  until  the  1st  of  March,  1896 — a  period 
of  three  years — the  interest-bearing  debt  increased  over  $262,000,000,  or  an 
average  of  more  than  $87,000,000  per  year,  against  a  decrease  of  nearly  $69,- 
000,000  per  year  under  Republican  Administrations  for  the  previous  twenty- 
seven  years. 

THE   EFFECT    OF   DEMOCRATIC   LEGISLATION. 

The  proceeds  of  these  bond  transactions  were  used  to  pay  the  running 
expenses  of  the  Government;  to  cover  deficits  which  the  famous  Wilson  bill 
had  created.  Not  all  the  Democratic  leaders  were  so  frank  as  Representative 
Dockery,  of  the  Appropriations  Committee  of  the  House,  when  he  admitted, 
in  a  speech  April  29,  1896,  that— 

"During  the  last  fiscal  year  the  current  income  was  inadequate  to  meet 
current  liabilities  by  $42,805,223.18,  and  it  is  now  estimated  that  the  deficiency 
in  current  revenues  for  the  present  fiscal  year  will  not  be  less  than  $25,- 
000,000." 

Such  has  been  the  admitted  effect  of  Democratic  legislation  as  exposed 
by  its  own  friends,  while  the  prostrate  condition  of  labor-employing  indus- 
tries throughout  the  United  States  has  been  a  sad  reminder  of  the  truthful- 
ness of  their  admissions. 

Its  enemies,  Mr.  Speaker,  will  attempt  again  to  blind  the  vision  of  the 
people  to  the  blessings  of  the  bill  which  the  Fifty-fifth  Congress  has  enacted 
into  law;  but  Republicans  everywhere  may  be  proud  of  the  first  substantial 
step  in  four  years  to  disperse  the  black  vapors  of  misery  and  to  bring  back 
the  era  of  universal  industry  and  prosperity  which  marked  Republican  ad-' 
ministrations  almost  unbrokenly  for  thirty  years.  This  bill  has  commanded 
the  full  strength  of  the  Republican  representation  in  Congress,  and  33  votes 
from  the  South  were  cast  for  it  at  different  stages  of  its  career.  For  the 
first  time  in  the  history  of  Republican  tariff  legislation  Democrats  have 
broken  away  from  their  party  creed  to  vote  for  protection,  convinced  that 
thereby  alone  can  they  hope  to  restore  living  wages,  fair  returns  for  capital 
and  industry,  and  better  times  for  the  farming  class. 

THE   BLESSINGS   OF   TARIFF  LAWS. 

The  bill  may  not  be  a  perfect  measure;  perfection  cannot  be  achieved  at 
one  stroke;  but  it  was  designed  to  fit  the  conditions  that  exist  to-day  and  is 
a  great  stride  in  the  direction  of  a  tangible  and  substantial  betterment  of 
the  condition  of  all  classes  of  producers.  If  left  to  work  out  its  own  salvation 
it  will  soon  increase  the  revenues  of  the  Government,  so  that  no  more  bonds 
will  have  to  be  issued  to  pay  our  current  expenses,  while  at  the  same  time 
it  will  reopen   industrial   channels   long  closed  to  hnnp?t  toil    and   put   our 


workingmen  back  on  the  pay  rolls  of  the  shops  and  factories  that  were  closed 
by  the  Wilson  bill. 

In  my  opinion,  Mr.  Speaker,  we  must  look  for  our  greatest  blessings  to 
judicious  tariff  legislation,  and  not  allow  ourselves  to  be  misled  by  specious 
arguments  of  financial  revolution.  What  shall  it  benefit  the  farmer,  the 
mechanic,  and  the  laboring  man  if  we  open  to  them  the  opportunities  to  earn 
wages  and,  on  the  other  hand,  disturb  our  hitherto  unassailable  system  of 
finance  and  pay  them  in  a  depreciated  currency?  In  this  connection  I  pro- 
pose to  review  briefly  the  financial  history  of  the  United  States,  so  that 
he  who  runs  may  read  the  fallacy  of  many  of  the  popular  arguments  em- 
ployed to  convert  the  unwary  to  free  coinage  of  16  to  1,  and  also  to  show 
how  its  advocates  have  perverted  facts  and  history  to  strengthen  their 
otherwise  untenable  cause.  , 

A  REVIEW  OF  OUR  FINANCIAL  LEGISLATION. 

Thirty-six  years  ago  the  Republican  party,  confronted  by  the  gravest 
exigency  in  our  national  life,  originated  and  adopted  a  system  of  currency 
and  credit. 

This  system  was  subjected  to  the  severest  of  all  tests — civil  war  in  its 
most  tremendous  form — but  achieved  a  success  and  earned  a  place  among  the 
monetary  systems  of  the  world  far  greater  than  any  ever  instituted  by  any 
government  on  the  face  of  the  earth. 

The  Republican  party  has  steadfastly  maintained  the  high  standard  of 
this  system  through  all  the  years  of  its  ascendancy;  has  held  firmly  to  an 
interchangeable  currency  based  upon  coin,  every  dollar  of  which  has  been 
maintained  and  redeemed  according  to  the  original  pledge. 

The  same  party  is  to-day,  as  ever,  in  favor  of  the  -same  sound  money, 
and  will  continue  to  maintain,  by  prudent  legislation,  the  same  wide  use  of 
gold,  silver,  and  paper  with  profit  and  security  to  all  the  people. 

OUR  METALLIC  MONEY. 

Under  the  Confederation  of  1778,  Congress  was  given  the  exclusive  right 
and  power  to  regulate  the  alloy  and  value  of  the  coin  struck  by  their  own 
authority,  or  by  that  of  the  respective  States;  but,  having  no  power  to  enforce 
its  laws  in  the  States  and  no  revenues  with  which  to  carry  out  its  own  right 
of  coinage,  nothing  was  done. 

Under  the  Constitution,  Congress  was  given  the  exclusive  power  to  coin 
money,  to  regulate  the  value  thereof  and  of  foreign  coins.  It  was  expressly 
provided  that  no  State  shall  coin  money,  and  Congress  exercised  this  power 
by  the  passage  of  the  act  of  April  2,  1792,  establishing  a  mint  and  regulating 
the  coins  of  the  United  States, 

In  this  act  the  "dollar"  of  gold  or  silver  was  adopted  as  the  unit  money  of 
account,  with  the  dollar  coin  of  371.25  grains  of  pure  silver  as  the  base. 

FROM  SILVER  TO   GOLD  BASIS. 

Between  1792  and  1834  we  were  under  a  bimetallic  system,  with  the  silver 
dollar  as  the  actual  unit  on  a  basis  of  15  to  1.  Spanish  dollars  until  1816, 
and  other  foreign  coins  of  both  metals  until  a  later  date,  were  also  a  legal 


6 

tender,  but,  as  oiir  lighter- weight  silver  dollars  were  exported  to  the  West 
Indies,  where  they  passed  at  par,  we  were  without  a  sufficient  national  cur- 
rency of  either  or  both  metals. 

Legislation  w^as  therefore  necessary,  and  by  the  laws  of  1834  and  1837 
the  weight  and  fineness  of  the  gold  coin — and  by  the  latter  act  the  weight 
and  fineness  of  both  coins — were  changed  so  as  to  make  the  ratio  16  (15.98) 
to  1,  and  to  establish  the  double  unit,  viz.:  the  eagle  of  gold  and  the  dollar 
of  silver. 

COINAGE   AND  EXPORT  OF  SILVEB,  TO    1853. 

This  change  undervalued  silver,  as  the  act  of  1792  had  undervalued  gold, 
and  as  a  result  silver  went  out  of  the  United  States  to  countries  where  it 
was  worth  more  than  with  us. 

In  1847  our  coinage  of  gold  was  $20,202,325,  which  fell  to  $3,775,513  in 
1848;  while  silver  in  1847  was  $2,374,450,  and  $2,040,050  in  1848. 

The  effects  of  the  California  gold  output  were  felt  in  1850  and  its  coinage 
increased,  while  that  of  silver  decreased. 

In  1850  the  gold  coinage  was  $31,981,739;  in  1851,  $62,614,493;  in  1852, 
$56,846,188;  while  silver  in  1850  was  $1,866,100;  in  1851,  $774,397,  and  in 
1852,  $999,410. 

CONDITIONS   IN    1853. 

By  1853  (in  spite  of  an  annual  coinage  of  over  a  million  dollars  in  halves, 
quarters,  etc.)  there  was  not  enough  subsidiary  silver  for  small  change,  and 
we  were  practically  on  a  gold  basis.  By  the  act  of  this  year  the  values  of 
the  minor  silver  coins  were  reduced  so  as  to  stop  their  exportation,  and,  what 
was  a  still  more  important  act,  these  were  made  a  limited  legal  tender  for  air 
amounts  not  exceeding  $5.  This  was  the  first  step  in  the  impairment  of  the 
double  standard,  established  by  the  gold  act  of  1834. 

CAUSES. 
There  were  good  reasons  for  this  action.     Silver  was  scarce,   gold  was 
plentiful,  and  it  had  been  found  necessary  to  coin  silver  in  small  denomina- 
tions and  with  smaller  proportionate  values  than  the  standard  dollars  to 
keep  them  at  home  for  domestic  use. 

INCREASED   GOLD   OUTPUT. 

The  world's  supply  of  gold  had  suddenly  increased  because  of  the  Cali- 
fornia and  Australian  output.  From  an  annual  product  of  about  $13,482,000 
in  the  period  from  1831  to  1840  it  reached  $132,500,000  after  1850.  The  natural 
result  was  to  raise  the  value  of  silver  and  to  lower  that  of  gold. 

NO  SILVER  IN  CIRCULATION. 
Then,  too,  we  had  no  silver  dollars  in  the  country,  or  at  least  not  in 
sufficient  quantities  to  figure  largely  as  a  circulating  medium.  We  had 
coined  none  from  1806  to  1836.  In  1806  President  Jefferson,  the  demigod 
of  the  silver  Democracy  of  the  present  day,  stopped  the  coinage  of  the 
silver  dollar  at  the  mints  of  the  United  States,  and  from  1836  to  1853  wa 
had  only  coined  of  dollars  1,067,373,  all  the  other  silver  coinage  in  this 
period  being  of  minor  money. 


GOLD  THE  ACTUAL  STANDARD. 

While,  therefore,  after  1853,  except  for  the  minor  coins,  the  double  stand- 
ard was  the  law,  yet  the  actual  condition  was  that  of  a  single  gold  standard. 

RESUME. 

Let  us  briefly  review. 

The  act  of  1792  made  the  silver  dollar  the  unit,  at  15  to  1;  those  of  1834 
and  1837  changed  the  ratio  to  16  to  1;  that  of  1853  reduced  the  values  of  the 
minor  silver  coins  and  limited  their  legal  tender  to  $5. 

"While  the  acts  of  1834  and  1837  made  the  eagle  of  gold  a  co-unit  with 
silver,  they  did  not  repeal  the  act  of  1792,  which  based  the  unit  of  a  bi- 
metallic money  on  the  silver  dollar. 

But  from  the  causes  already  named  1853  found  us  practically  with  a 
single  gold  standard,  with  gold  as  the  cheaper  and  more  plentiful  metal. 
While  silver  dollars  were  a  full  legal  tender,  they  were  not  greatly  used, 
because  they  were  usually  worth  more  abroad  than  at  home,  and  were  ex- 
ported.   Gold  was  the  chief  and  sole  base  for  coin  currency. 

SILVER  DOLLARS  COINED  UP   TO    1853. 

We  could  not,  indeed,  have  had  many  silver  dollars  then,  because  the 
total  coinage  of  these  up  to  1853  had  been  only  $2,506,890.  This  condition 
obtained  until  the  exigencies  of  the  civil  war  drove  all  coin  money  out  and 
gave  place  to  bonds,  greenbacks,  and  national  bank  notes. 

GOLD   STANDARD   INTENDED. 

There  is  no  doubt  as  to  the  intention  of  the  lawmakers  at  that  time  on 
this  point.  They  were  legislating  for  a  single  gold  standard,  although  they 
left  the  silver  dollar  as  a  co-unit.  That  this  was  the  end  sought  is  shown 
by  the  remarks  made  by  the  chairman  of  the  Committee  on  Ways  and 
Means: 

"We  mean  to  make  gold  the  standard  coin,  and  make  these  new  coins" 
(the  subsidiary  silver  of  proportionately  less  value)  "applicable  and  con- 
venient, not  for  large  but  for  small  transactions." 

Another  member  of  the  same  committee  said: 

"We  have  had  but  a  single  standard  for  the  last  three  or  four  years;  that 
has  been  and  now  is  gold.  We  propose  to  let  it  remain  so,  to  adapt  silver  to 
it,  to  regulate  it  by  it." 

In  1861  came  the  civil  war,  the  tremendous  expense  account  of  the  Gov- 
ernmer.t,  the  exhaustion  of  our  current  money,  and  later  the  issues  of  paper 
money  in  Treasury  notes  and  bonds  and  national  bank  notes. 

HISTORY  OF  THE   ACT   OF    1873. 

This  act,  concerning  which  so  much  has  been  said,  was  introduced  in  the 
Senate  April  25,  1870;  was  considered  through  five  sessions  of  Congress,  and 
became  a  law  February  12,  1873. 

IT  HAS  BEEN  CHARGED  THAT  THIS  BILL  DEMONETIZED  SILVER, 
NOT  OPENLY,  BUT  BY  MEANS  OP  AN  AMENDMENT  NOT  FULLY 
KNOWN  OR  UNDERSTOOD  EXCEPT  BY  A  FEW.  Uet  us  follow  the  course 
of  thif.  bill, 


THE   ORIGINAL  BILIi. 

As  originally  presented,  April  25,  1870,  section  14  made  the  gold  dollar  of 
25.8  grains  the  standard  of  value,  the  unit  of  computation. 

Section  15  provided  that  the  weight  of  the  silver  coin  should  be  for  the 
half  dollar  192  grains  (the  dollar  was  not  mentioned),  with  proportionate 
values  for  the  quarter,  25-cent  piece,  and  dime;  and  that  these  should  be  legal 
tender  for  |1. 

Section  18  enacted  that  no  coins  other  than  those  mentioned  (that  is,  gold 
and  minor  silver)  should  be  thereafter  coined. 

SILVER  DOLLAR  PIECE   DISCONTINUED. 

On  page  11  of  the  report  which  accompanied  this  original  bill  are  the 
following  words: 

"The  coinage  of  the  silver  dollar  piece  is  discontinued." 
The  discontinuance  of  the  silver  dollar  piece  is  pointed  out  by  the  com- 
mittee three  times  in  other  places  in  this  report.  In  all  the  discussions  and 
in  every  form  of  the  bill  these  two  features,  making  the  gold  dollar  the  stand- 
ard unit  of  value  and  the  omission  of  the  silver  dollar  (of  412i/^  grains),  re- 
main unchanged.  Indeed,  sections  14  and  18  (afterwards  section  17)  were 
never  changed,  but  passed  absolutely  as  first  presented  in  the  original  bill. 

SILVER  SECTION. 

Section  15  passed  through  enough  changes  to  warrant  the  idea  that  its 
every  provision  was  understood  by  all  fully.  In  the  Senate  it  first  went, 
through  unmodified — 36  to  14 — (January  10,  1871),  Senator  Sherman  voting 
against  and  Senator  Stewart,  of  Nevada,  voting  for  it. 

LEGAL  TENDER  $5. 

In  the  House  committee  this  section  was  amended  to  make  the  legal 
tender  $5;  but  owing  to  lack  of  time,  the  bill  went  over. 

On  March  9,  1871,  Mr.  Kelley,  in  the  House,  reported  the  same  bill  as 
amended  by  the  previous  House  committee;  that  is,  with  the  legal  tender 
raised  to  $5;  and,  except  for  the  5-cent  piece,  it  was  an  exact  reproduction 
of  the  law  of  1853.  No  silver  dollars  were  to  be  coined,  and  this  minor 
ccinace  was  to  be  a  legal  tender  for  ?5  only, 

A  384-GRAIN  DOLLAR. 

In  the  discussion  it  was  shown  that  some  desired  to  have  a  silver  dollar 
included,  although  all  agreed  that  its  legal  tender  should  be  limited,  and 
that  its  contents  should  be  not  412%  grains,  but  twice  that  of  the  proposed 
half  dollar,  or  384  grains. 

On  February  13,  1872,  Mr.  Hooper  reported  it  back  as  H.  R.  1427,  with 
these  provisions: 

"Sec.  16.  That  the  silver  coins  of  the  United  States  shall  be  a  dollar,  a  half 
dollar,  a  quarter  dollar,  and  a  10-cent  piece,  and  that  the  weight  of  the  dollar 
shall  be  384  grains,  the  half  and  other  coins  in  proportion,  and  that  these 
shall  be  legal  tender  for  $5." 


This  passed  the  House  May  27,  1872.  It  will  be  noted  that  this  is  not  the 
old  standard  dollar  of  412%  grains,  but  a  subsidiary  coin  for  change  and  of 
limited  legal  tender. 

TRADE  DOLLAR. 

There  were  some  who  desired  to  attempt  a  competition  in  the  East  Indies 
with  the  Mexican  dollar,  and  through  these  the  bill  was  still  further  modified. 
As  it  was  finally  passed,  in  the  Senate  January  17,  1873,  and  House  February 
7,  1873,  the  silver  clauses  were  as  follows: 

A  trade  dollar  of  420  grains  for  this  export  trade,  although  it  was  made 
a  legal  tender  and  so  remained  until  July  22,  1876,  for  $5  at  home;  a  half  dol- 
lar of  12^^  grams  (on  the  basis  of  a  silver  dollar  of  396  grains),  and  minor 
coins  of  proportionate  value. 

All  these  were  made  legal  tender  for  ?5  only,  A  5-cent  piece  was  in- 
cluded in  the  copper  and  nickel  coins. 

412y2-GRAIN   DOLLAR  NEVER  IN  THE   BILL. 

FROM  THE  FOREGOING  IT  IS  PLAIN  THAT  THE  SILVER  DOLLAR 
OF  412^2  GRAINS,  "  THE  DOLLAR  OF  THE  FATHERS,"  WAS  N^r 
DROPPED  OUT  SURREPTITOUSLY,  BECAUSE  IT  WAS  NEVER  IN  THE 
BILL  TO  BE  DROPPED  OUT.  No  one  wanted  it  there.  First  they  had  a 
half  dollar  (no  dollar),  then  a  dollar  of  384  grains,  then  a  trade  dollar  for 
the  Pacific  coast  trade  to  the  East  Indies,  and  a  half  dollar  of  12 V^  grams, 
or  192.9  grains  (at  the  rate  of  386  grains  for  a  dollar),  and  all  this  silver  was, 
from  first  to  last,  a  limited  legal  tender  for  from  one  to  five  dollars. 
WHY  WAS  SILVER  DROPPED  OUT  P 

The  law  of  1853  had  abolished  the  coinage  of  our  minor  silver  coins  for 
private  account,  but  by  a  ruling  of  Mr.  Guthrie,  Secretary  of  the  Treasury 
under  President  Pierce,  the  Mint  was  ordered  to  receive  silver  from  private 
individuals  and  coin  it. 

This  ruling  furnished  the  opportunity  for  an  immense  profit  to  the  coin 
and  bullion  broker,  and  he  did  not  fail  to  take  advantage  of  it.  Our  silver 
dollars,  having  a  nominal  value  of  100  cents,  were  collected  by  him,  taken  to 
the  mints,  and  coined  into  minor  coin;  every  two  dollars  yielded  four  half 
dollars,  a  dime,  and  almost  a  half  dime.  Here  was  a  profit  of  7  per  cent. 
Silver  bullion  coined  into  our  minor  coin  yielded  a  profit  of  4  per  cent. 
From  a  quarter  to  a  half  million  dollars  were  made  in  this  way  yearly,  with 
a  prospect  of  many  millions  profit  when  we  should  resume  specie  paymeits. 

INTEREST  OF  THE  COIN  BROKERS. 

Following  the  explanation  of  the  various  sections  of  the  bill  by  Mr. 
Hooper  came  a,  general  discussion  of  the  bill,  in  which  was  shown  a  deter- 
mined effort  to  secure  its  defeat.  This  effort  was  especially  manifest  on  the 
part  of  some  of  the  members  from  New  York. 

Mr.  Brooks  went  so  far  as  to  move  to  strike  out  section  1,  for  the  .pur- 
pose, as  he  frankly  avowed,  of  putting  an  end  to  the  bill.  Both  Mr.  Potter 
and  Mr.  Brooks  objected  to  provision  after  provision  of  the  bill,  usually 
without  specific  reason,  simply  declaring  that  for  the  present  the  existing 
laws  were  sufficient. 


10 

MR.   ESLIiEY'S   EXPLANATION. 

Goaded  to  desperation  by  the  persistent  attempts  to  defeat  the  measure, 
Mr.  Kelley,  of  Pennsylvania,  took  the  floor  and  very  pointedly  called  the  at- 
tention of  the  House  to  the  fact  that  any  legislation,  however  general  in 
character,  which  assails  existing  abuses  and  would  abolish  opportunities 
for  illegitimate  profits  to  speculators,  is  met  with  zealous  and  organized 
opposition. 

"Let  me,  Mr.  Speaker,  hastily  point  out  some  of  the  interests  that  are 
on  this  floor  seeking  to  protect  themselves  by  preventing  the  passage  of  this 
bill.  One  silver  bullion  dealer  in  New  York  during  the  last  Congress  ad- 
mitted to  Mr.  Hooper  that  under  one  defect  in  existing  laws  he  was  making 
at  the  cost  of  the  Government  from  $75,000  to  $100,000  a  year.  His  profits— 
and  he  is  but  one  of  those  who  are  growing  fat  and  greedy  upon  the  defects 
in  our  mint  lav.-s — arise  in  this  way:  Our  country,  like  every  other  civilized 
government,  should  procure  its  own  metal  out  of  which  to  make  subsidiary 
coinage.  Now,  sir,  every  coin  of  ours  that  is  not  gold  is  subsidiary.  Our 
silver  dollar,  half  dollar,  and  every  other  coin  that  is  not  gold  is  subsidiary. 
All  other  governments  pay  the  expense  of  minting  by  the  difference  between 
the  intrinsic  value  of  subsidiary  coins  and  the  value  at  which  they  circulate. 
And  such  was  the  law  of  this  country  until  by  a  ruling  of  Mr.  Guthrie  the 
mint  was  ordered  to  receive  silver  from  private  individuals  and  coin  It. 
Now,  it  so  happens  that  a  constituent  of  the  gentleman  from  New  York  has 
been  taking  advantage  of  that  ruling  and  deposited  silver  to  be  made  into  half 
dollars  and  other  silver  coins.  He  has,  as  he  stated  to  my  colleague  (Mr. 
Hooper,  of  Massachusetts),  and  myself,  been  doing  a  business  of  from  $1,800- 
000  to  $2,000,000  per  annum,  giving  him  as  profit  an  annual  income  equal  to 
the  salary  of  the  President  for  the  Presidential  term." 

In  his  speech  (House,  April  9,  1872,  Congressional  Globe,  pages  2306-2308, 

vol.  102,  one  of  ten  columns,  by  the  way),  Mr.  Hooper,  for  the  committee, 

said: 

SILVER  DOLLARS  NOT   A   CIRCULATING  COIN. 

"Section  16  re-enacts  the  provisions  ot  the  existing  laws  defining  the  silver 
coins  and  their  weights,  respectively,  except  fei  relation  to  the  silver  dollar, 
which  is  reduced  in  weight  from  412%  to  384  grains,  thus  making  it  a  sub- 
sidiary coin  in  harmony  with  the  silver  coins  of  less  denomination  to  secure 
its  concurrent  circulation  with  them.  The  silver  dollar  of  412^/^  grains,  by 
reason  of  its  bullion  or  intrinsic  value  being  greater  than  its  nominal  value, 
long  since  ceased  to  be  a  coin  of  circulation,  and  is  melted  by  manufacturers 
of  silverware." 

MR.  STOUGHTON  SAYS  SILVER  DOLLAR  IS  TOO  VALUABLE. 

On  the  same  day,  Mr.  Stoughton,  of  Michigan,  made  a  speech  of  seven 
columns,  in  which  he  said  (same  volume,  page  2308) : 

"The  silver  dollar  as  now  issued  is  worth  for  bullion  3^/4  cents  more  than 
the  gold  dollar,  and  T'-A  cents  more  than  two  half  dollars.  Having  a  greater 
intrinsic  and  nominal  value,  it  is  certain  to  be  withdrawn  from  circulation 
whenever  we  return  to  specie  payment,  and  to  be  used  only  for  manufacture 
and  exportation  as  bullion." 


11 

MB.  POTTER  DECLARES  LEGAL  TENDER  SHOULD  BE  GOLD. 

Mr.  Potter,  in  disciissing  this  part  of  the  bill,  said: 

"This  bill  provides  for  the  making  of  changes  in  the  legal-tender  coin 
cf  the  country  and  for  substituting  as  legal-tender,  coin  of  only  one  metal, 
instead,  as  heretofore,  of  two.  I  think  myself  this  would  be  a  wise  provision, 
and  that  legal-tender  coins,  except  subsidiary  coin,  should  be  of  gold  alone." 
(Page  2310,  volume  102.) 

MR.   KELLEY  FAVORS  GOLD  AS  STANDARD  AND  SILVER  AS 
SUBSIDIARY  MONEY. 

And  Mr.  Kelley,  who  is  reported  as  having  said  afterwards  that  he  "did 
not  know  that  the  bill  omitted  the  standard  silver  dollar,"  said  on  this  same 
day  (Globe,  volume  102,  page  2316): 

"The  values  of  gold  and  silver  continually  fluctuate.  You  cannot  deter- 
mine this  year  what  will  be  the  relative  values  of  gold  and  silver  next  year. 
They  were  15  to  1  a  short  time  ago;  they  are  16  to  1  now. 

"Hence  all  experience  has  shown  that  you  must  have  one  standard  coin 
which  shall  be  a  legal  tender  for  all  others,  and  then  you  may  promote  your 
domestic  convenience  by  having  a  subsidiary  coinage  of  silver,  which  shall 
circulate  in  all  parts  of  your  country  as  legal  tender  for  a  limited  amount 
and  be  redeemable  at  its  face  value  by  your  Government.  But,  sir,  I  again 
call  the  attention  of  the  House  to  the  fact  that  the  gentlemen  who  oppose 
this  bill  insist  upon  maintaining  a  silver  dollar  worth  3%  cents  more  than 
the  gold  dollar  and  worth  7  cents  more  than  two  half  dollars,  and  that  so 
long  as  those  provisions  remain  you  cannot  keep  silver  coin  in  the  country." 

SENATOR  STEWART   DECLARES   EOR  GOLD, 

Speaking  on  another  subject  a  few  months  afterwards,  Mr.  Stewart,  then, 
as  now,  a  Senator  from  Nevada,  said  (page  1392,  volume  2,  part  2,  Con- 
gressional Record) : 

"  I  want  the  standard  gold,  and  no  paper  money  not  redeemable  in 
gold." 

About  two  weeks  later,  on  February  20,  1874,  Senator  Stewart  said  (same 
volume,  page  1677) : 

"By  this  process  we  shall  come  to  a  specie  basis;  and  when  the  labor- 
ing man  receives  a  dollaf ,  it  will  have  the  purchasing  power  of  a  dollar, 
and  he  will  not  be  called  upon  to  do  what  is  impossible  for  him  or  the 
producing  classes  to  do,  figure  upon  the  exchanges,  figure  upon  the  fluc- 
tuations, figure  upon  the  gambling  in  New  York;  but  he  will  know  what 
his  money  is  worth.  Gold  is  the  universal  standard  of  the  world.  Every- 
body knows  what  a  dollar  in  gold  is  worth." 

These  are  the  words  of  Senator  Stewart  before  he  became  simply  the 
representative  of  a  special  interest. 


12 

SENATOR  JONES  EXTOLS   GOLD. 

Senator  Jones,  of  Nevada,  took  the  same  position.  In  the  Senate  April 
1, 1S74,  he  said: 

"  Does  this  Congress  mean  now  to  leave  entirely  out  of  view  and  to 
discard  forever  a  standard  of  value?  Did  any  country  ever  accumulate 
wealth,  achieve  greatness,  or  attain  a  high  civilization  without  such 
standard?  And  what  but  Gold  can  be  that  standard?  What  other  tbing 
on  earth  possesses  these  requisite  qualities?" 

PUBLIC   DISCUSSION  OF  ACT   OF   1873. 

It  has  been  charged  that  very  little  was  said  in  the  public  press  about 
this  legislation.  To  this  the  answer  is  that  in  1873  neither  metal  was  in 
circulation;  and  it  was  also  simply  a  reiteration  of  what  had  been  a  com- 
mercial condition  for  more  than  twenty  years.  The  bill  itself  had  been 
before  Congress  three  years.  From  the  date  of  its  introduction  in  the 
Senate  it  was  printed,  by  order  of  Congress,  with  amendments,  thirteen  times, 
and  was  considered  during  five  different  sessions  by  the  Senate  and  House. 
The  debates  on  the  bill  in  the  Senate  covered  66  pages  and  in  the  House 
78  pages  of  the  Congressional  Globe.  It  was  finally  passed  with  only  the 
addition  of  the  trade  dollar,  and  there  was  not  much  worthy  of  extended 
comment. 


THE  PRODUCTION  OF  GOLD  AND  SILVER. 

The  legislation  of  1853  and  1873  was  based  on  commercial  conditions, 
which  in  turn  were  largely  caused  by  the  variation  in  the  output  of  the 
two  metals  both  in  the  United  States  and  in  the  world.  Let  us  briefly  study 
these  and  see  why  from  1853  to  1873,  and  even  for  a  few  years  afterwards, 
gold  was  the  more  plentiful  and  cheaper;  why  later  the  price  of  silver  fell  so 
that  the  two  were  on  a  parity;  why  it  kept  on  falling  to  far  below  this  limit; 
and  finally  why  in  recent  years  the  change  in  the  ratio  of  production  has 
tended  and  still  tends  strongly  to  induce  the  belief  that  a  few  years  mo're 
will  see  them  near  the  former  parity. 

GOLD  IN  THE   UNITED  STATES. 

Up  to  the  year  1848  our  annual  output  of  gold  had  never  exceeded  a 
million,  except  a  trifle  in  two  years.  In  that  year  it  suddenly  rose  to  ten 
milions  (an  amount  equal  to  the  total  annual  world  product  up  to  1840); 
in  1849,  to  forty  millions;  in  1850,  to  fifty  millions,  and  ranged  from  that 
figure  to  sixty-five  millions  up  to  1860.  Then  for  five  years  it  ranged  from 
forty  to  forty-six,  and  from  1865  to  1870  averaged  over  fifty  millions.  For 
the  next  five  years  it  averaged  vmder  forty,  to  go  to  fifty-one  millions  in 
1878,  and  ranged  from  thirty  millions  in  1883  to  $39,500,000  in  1894.  It  did 
not  touch  the  forty-million  mark  after  1871,  except  $51,200,000  in  1878. 

The  recent  increase  dates  from  1892,  when  it  was  at  the  low-water  mark 
of  $33,000,000.  In  1893  it  went  to  $35,900,000;  in  1894  it  reached  $39,500,000; 
in  1895  it  went  to  $46,610,000,  and  in  1896  to  $53,088,000.  The  Director  of  the 
Mint  estimates  that  but  for  the  great  strikes  at  Leadville,  Cour  d'Alene,  and 
Cripple  Creek  the  output  for  1897  would  have  been  greatly  in  excess  of  what 
the  figures  for  that  year  are  likely  to  show. 


13 


GOLD  IN  THE   WORLD. 

The  gold  product  of  the  world  had  averaged  for  many  years  before  1849 
a  little  over  ten  millions  per  year.  In  the  ten  years  from  1841  to  1850  this 
suddenly  rose  to  the  then  unprecedented  figure  of  $36,393,000.  Despite  this 
enormous  gain,  the  next  five  years,  1851  to  1855,  showed  a  product  of  more 
than  three  and  a  half  times  as  great,  $132,513,000,  or  the  immense  sum  of 
$662,566,000  for  the  five  years. 

From  1856  to  1860  it  avera.ged  $134,083,000;  fell  off  eleven  millions  in  the 
next  five  years;  rose  to  $129,614,000,  1866  to  1870;  fell  to  $115,577,000,  1871  to 
1875;  to  $114,585,000,  1876  to  1880,  and  to  $99,116,000,  1881  to  1885. 

This  was  the  gold  low-water  mark  for  the  world  for  the  past  forty  years. 
Since  that  time  it  has  steadily  increased,  until  for  the  year  1892  it  reached 
a  sum  higher  than  ever  before  known — the  enormous  total  of  $146,815,100. 
For  1893  there  was  a  further  increase  of  nearly  eleven  millions,  to  $157,287,- 
600,  while  the  amount  for  1894  was  twenty-three  millions  more — to  the  vast 
quantity  of  $180,626,100.  The  product  for  1895  was  $200,406,000;  that  of  189S, 
as  computed  by  Rothwell,  $220,600,000;  while  conservative  estimates  put  the 
world's  gold  product  within  five  years  at  $300,000,000  per  annum. 

COUNTRIES   OF   INCREASE. 

It  may  be  well  to  see  whence  this  great  increase  has  come.  It  v/ill  also 
enable  us  to  estimate  as  to  the  future.  The  principal  gold-producing  coun- 
tries for  the  years  1894,  1895,  and  1836  were,  in  order  and*  am.ounts,  as 
follows: 


Country 

1894 

1895 

1896 

United  Stfltes 

Australasia 

$39,500  000 

41,760,800 

40,271,000 

24,13:^,400 

4,500,000 

8,556,800 

$158,722,000 

$46,610,000 

44,798,300 

44,554,900 

28,894,400 

6,000,000 

3,521,000 

$53,088,000 
45,182,000 

A  f rica 

44,000,000 

Russia 

*31, 000,000 

Mexico 

6,513,090 
*5,000.000 

China 

Total  from  6  coiin(ric.«< 

$174,378,600 

$184,783,000 

The  figures  marked  with  an  (*)  are  tliose  of  Mr.  Rothwell,  of  Mineral 
Industry,  who  estimates  the  gold  product  of  the  world  for  1896  to  have  been 
$220,600,000. 

Of  the  above,  China  shows  a  small  increase;  it  of  all  other  nations  re- 
mains about  the  same  year  by  year.  The  recent  and  future  increases  are  to 
be  found  and  expected  in  Africa,  Australasia,  United  States,  Russia,  and 
Mexico.    These  increases  have  been  as  follows: 


Country 

1893  over  1892 

1894  OVER  1893 

1895  OVER  1894 

United  States 

$2,900,000 

1,529,600 

4,711,500 

176,101) 

$3,545,000 
6,072,200 

11,328,500 
3,1<I4,700 

$7,110,000 
3,037,500 
4,283,900 
1,500,000 
4,761,000 

Australasia 

Africa 

Mexico 

Eussia 

Increase 

$9,317,200 

$24,140,400 

$20  692,400 

I 


u 

The  Director  of  the  Mint  and  leading  European  authorities  agree  In  as- 
cribing the  comparatively  small  increase  in  Africa  to  the  political  disturb- 
ances in  the  Transvaal,  which  were  brewing  some  time  prior  to  their  actual 
eruption  in  an  attempt  at  revolution. 

SILVER  IN  THE   UNITED  STATES. 

From  1792  to  1834  the  product  of  silver  was  insignificant;  from  1834  to 
1844  it  is  estimated  at  a  total  of  $250,000;  from  1845  to  1857  both  inclusive, 
it  is  given  at  $50,000  per  year.  In  1858  it  went  to  $500,000;  in  1859,  fell  t6 
$100,000;  1860,  $150,000;  in  1861  it  rose  suddenly  to  $2,000,000;  went  to  $4,500,- 
000  for  TS62;  $8,500,000  in  1863,  and  ranged  from  eleven  millions  to  sixteen 
millions  up  to  1871.  In  that  year  it  reached  twenty-three,  and  varied  from 
twenty-eight  to  forty-eight  millions  up  to  1885. 

Demonetization,  so  called,  took  place  in  1873;  resumption  and  the  use  of 
coin  money  took  place  in  1879.  From  ]874  to  1884  there  was  only  a  slight 
increase,  the  highest  figure,  in  1884,  being  $48,800,000.  In  1885  it  reached  $51,- 
600,000;  rose  to  fifty-three  in  1887;  to  fifty-nine  in  1888;  to  sixty-four  in  1S89, 
and  touched  seventy  millions  in  1890.  In  1891  it  went  to  $75,417,000;  in 
1892  it  reached  the  high-water  mark — the  highest  ever  known,  $82.101.000 — 
only  to  fall  off  in  1893  to  $77,576,000,  and  to  $64,000,000  in  1894,  increasing  to 
$72,056,000  in  1895,  and  to  $76,069,000  in  1896. 

COMPARATIVE   INCREASE. 

From  1874  to  1895  silver  increased  $34,751,000;  in  the  same  time  gold 
Increased  a  little  mere  than  thirteen  millions,  but  there  was  no  appreciable 
increase  in  silver  until  1885. 

SILVER  IN  THE  WORLD. 

The  annual  a^-erage  coinage  value  of  the  silver  produced  in  the  world 
has  been:  From  1545  to  1761,  $12,450,000  to  $22,162,000;  from  1761  to  1860  it 
ranged  from  $19,144,000  to  $37,618,000;  1861  to  1865,  it  was  $45,772,000;  1866 
to  1870,  $55,663,000;  1871  to  1875,  $81,864,000;  while  from  1876  to  1880  it  rose 
to  an  annual  average  of  $101,851,000,  and  from  1881  to  1885  to  $118,955,000. 

The  value  for  1886  was  $120,626,800,  and  for  1887  it  was  $124,281,000.  It 
continued  to  rise  steadily  some  twelve  millions  per  year  to  1893,  when  it 
was  $213,944,400.  The  year  1894  only  showed  a  slight  decrease,  a  trifle  over 
$1,114,800  for  that  period.  The  returns  for  1895  again  show  an  increase  of 
$4,781,200. 

COINAGE   vs.   COMMERCIAL   VALUE. 

The  foregoing  figures  as  to  silver  being  based  on  the  United  States 
coinage  value,  are  not  a  true  guide  as  to  the  actual  market  value.  From 
1833  to  1850  the  average  price  of  a  fine  ounce  of  silver  was  about  $1.31,  or 
60  pence.  In  1850  and  up  to  1872  it  ranged  a^bout  $1.33,  or  61  pence,  only 
touching  $1.36,  or  62  pence,  in  1859. 

AVERAGE   BULLION   VALUE. 
In  1873  the  average  bullion  value  of  a  silver  dollar  was  $1,004,  making 
it  more  valuable  than  a  gold  dollar.     P'or  1874   it  W2s  $0,988:    1875,   $0,964: 
1876,  $0,894;  1877,  $0,929,  and  has  not  reached  the  $0.90  mark  since.    In  1886 


15 

it  got  into  the  seventies,  rose  to  $0.81  in  1890,  to  fall  to  ?0.764  in  1891,  to 
?o.G74  in  1892,  to  $0,603  in  1893,  to  $0,491  in  1894,  rising  to  $0,505  in  1895,  and 
to  $0,522  in  1896,  falling  to  $0.44  in  July,  1897.  In  other  words,  in  1873  the 
ratio  was  1  to  15.92;  and  in  1897  it  is  1  to  39.66. 

1873   AND    1896. 

Tn  1873  a  silver  dollar  containing  371.25  grains  of  pure  silver  would  pur- 
chase only  369.77  grains  of  the  same  silver.  The  coined  value  was  1%  grains 
less  than  its  commercial  value. 

In  1894  this  same  dollar  would  purchase  756.04  grains,  or  twice  itself  and 
5V2  grains  over;  in  1895  it  would  purchase  733.87,  and  in  1896,  711.93." 
WHY  WHITE   METAL   FELL   IN   VALUE. 

Did  silver  fall  or  did  gold  get  scarcer  and  grow  dearer?  I  have  shown 
that  in  the  United  States  the  gol4  product  held  steadily  at  over  thirty  and 
(except  in  1877-78)  under  forty  millions  from  1874  to  1894,  going  from  $39,- 
500,000  in  the  latter  year  to  $46,610,000  in  1895;  that  in  the  world  for  this  same 
period  it  had  steadily  increased  from  $115,577,000  to  $200,406,000.  Evidently 
during  this  period  gold  did  its  full  duty  and  earned  the  repute  of  a  metal  of 
stable  and  sufficient  increase  in  output. 

Silver  first  came  to  be  a  factor  in  the  United  States  in  1861,  when  $2,000.- 
000  was  produced;  in  1864  it  was  $11,000,000;  in  1874,  $37,300,000;  in  1884,  $48,- 
800,000,  with  from  fifty-one  to  eighty-one  millions  per  year  thereafter. 

The  world  product  had  gone  from  an  annual  average  coinage  value  of 
$81,864,000  in  1874  to  $118,955,000  in  1884,  and  $212,829,600  in  1894. 

From  1874  to  1894  silver  did  not  make  nearly  so  great  a  proportional  gain 
as  did  gold  from  1841-1850  to  1851-1855. 

PBOPOBTION   OF   METALS. 

For  three  hundred  years,  1545-1840,  during  which  time  Spain  had  poured 
the  wealth  of  her  American  silver  mines  into  the  markets  of  the  world,  the 
general  average  proportion  of  the  value  of  the  two  metals  produced  had  been 
about  33  per  cent,  for  gold  and  67  per  cent,  for  silver.  From  the  period  1841- 
1850  up  to  that  of  1876-1880  this  proportion  was  about  66  per  cent,  for  gold 
and  34  per  cent,  for  silver — much  greater  than  the  three-century  average. 
From  1881  to  1894  gold  was  still  44  per  cent.,  while  for  1894  it  was  46.3, 
and  in  1895  it  had  increased  to  47.7  per  cent.  It  is  interesting  to  note  that 
the  percentage  of  production  by  value  from  1492  to  1895,  inclusive,  was  45.9 
of  gold  to  54.1  of  silver. 

SILVER  LEGISLATION  IN  THE  UNITED  STATES. 

Kelley-Bland  Bills. 

In  1876  Mr.  Kelley  (Pennsylvania)  introduced  a  bill  for  the  coinage  of 
standard  (412i,4  grains)  dollars,  and  to  make  them  an  unlimited  legal  tender. 
The  same  year  Mr.  Bland  (Missouri)  introduced  a  bill  for  the  unlimited 
issue  of  Treasury  notes  in  exchange  for  gold  and  silver  bullion. 

Both  these  measures  were  considered,  and  in  March,  1877,  a  commission 
of  Senators  and  Representatives  made  a  report  on  the  relations  of  gold  and 
silver. 


1« 

The  Kellcy  bill,  as  modified  and  ohampicned  by  Mr.  Bland,  passed  the 
Ilciite  November  5,  1877.  It  provided,  with  the  Bland  amendment,  for  the  free 
and  unlimited  coinage  of  412%-gi-ain  dollars,  and  made  these  an  unlimited 
legal  tender,  except 'where  otherwise  specified  by  contract. 

Bland-Allison  Act. 
The  Kelley-Bland  bill  was  modified  in  the  Senate,  and  became  known  as 
the  Bland-Allison  act.  As  modified  in  the  Senate  and  as  finally  passed  it 
restricted  the  coinage  to  the  4,000,000  ounces  per  month  which  the  Seci-etary 
of  the  Treasury  was  to  purchase,  and  it  gave  to  the  public  Treasury  the 
seigniorage  or  profit  on  these  purchases  and  coinage.  The  silver  thus  to  be 
coined  was  made  an  unlimited  legal  tender  except  for  certificates  of  deposit 
of  gold  and  silver  bullion  under  the  act  of  1863  and  in  cases  where  other 
money  had  been  stipulated  by  contract.  Section  3  authorized  the  deposit  of 
these  dollars  and  the  issuance  of  (silver)  certificates  therefor.  It  became  a 
law  over  the  President's  veto  February  28,  1878. 

Bland  and  Conger  Bills. 
In  1886  Mr.  Bland  again  introduced  a  bill  for  the  free  and  unlimited  coin- 
age of  silver — 

That  is,  giving  to  the  mine  owner  and  bullion  producer  the  whole 
profit  of  the  seigniorage  or  difference  between  the  actual  cost  and  the 
legal-tender  value  of  the  dollar  when  coined. 

Mi\  Conger  introduced  another  bill,  embodying  the  views  of  Secretary 
Windom,  allowing  owners  of  silver  to  deposit  it  and  receive  Treasury  notes 
to  the  amount  of  its  then  market  value,  these  to  be  redeemed  when  pre- 
sented at  its  then  value. 

The  Sherman  Law  of  1890. 

The  Conger  bill,  as  modified,  was  finally  passed,  and  became  a  law  July  14, 
1890,  and  is  known  as  the  Sherman  law. 

It  directed  the  purchase  of  4,500,000  fine  ounces  of  silver  eacu  month  at 
not  to  exceed  $1  for  371.25  grains  of  pure  silver,  and  the  issue  of  Treasury 
notes  therefor.  These  notes  were  to  be  redeemable  on  demand  in  coin,  and 
could  be  reissued.  They  were  made  legal  tender  for  all  debts,  public  or 
private,  except  where  otherwise  expressly  stipulated,  and  for  customs,  taxes, 
etc.,  and  when  so  received  could  be  reissued.  They  could  also  be  counted 
as  part  of  the  lawful  money  reserve  of  national  banks. 

The  act  further  provided  that  upon  demand  of  holder  the  Secretary  of 
the  Treasury  should  redeem  such  notes  in  gold  or  silver,  at  his  discretion, 
it  being  (says  the  act)  the  established  policy  of  the  United  States  to  main- 
tain the  two  metals  on  a  parity  with  each  other  upon  the  present  legal  ratio 
or  such  ratio  as  may  be  provided  by  law. 

Section  3  provided  for  the  coinage  until  July  1,  1891,  of  $2,000,000  per 
month;  after  that  date  as  much  as  needed  to  redeem  Treasury  notes  issued 
under  this  act. 

Any  gains  or  seigniorage  arising  from  such  coinage  was  to  be  accounted 
for  and  paid  into  the  Treasury. 


17 

WHAT  IS   GAIN  OB.  SEIGNIORAGE  P 

The  Bland  bill  as  it  passed  the  House  November  5,  1877  (it  did  not  become 
a  law),  allowed  any  owner  of  silver  bullion  to  deposit  it  and  receive  for 
every  371.25  grains  of  pure  silver  (412%  grains  of  standard  silver)  a  coined 
dollar  which  should  be  an  unlimited  legal  tender.  He  was  only  to  pay  the 
half  per -cent,  mint  charge  for  this  great  privilege.  All  the  profit  in  this 
transaction  was  to  go  not  to  the  Government,  not  to  the  people,  through  the 
Government,  but  to  the  mine  owner,  the  bullion  producer.  In  1886  Mr.  Bland 
introduced  another  bill  with  the  same  provisions.  Mr.  Plumb's  amendment 
to  the  Conger  bill,  adopted  by  the  Senate  June  10,  but  which  also  failed  to 
become  a  law,  had  the  same  provisions. 

SENATOR  STEWART'S   FREE   COINAGE   AMENDMENT. 

Another  attempt  was  made  in  January,  1891,  when  Senator  Stewart,  of 
Nevada,  offered  a  free-coinage  amendment  providing  that  at  the  "owner's 
option  he  may  receive  therefor  (silver  bullion)  an  equivalent  in  such  stand- 
ard dollars  or  Treasury  notes,"  having  "the  same  legal  qualities  as  the  notes 
provided  for  by  the  act  approved  July  14,  1890."  This  was  designed  to  leave 
the  Government  no  option  as  to  the  mode  of  payment  for  this  bullion,  and 
to  enable  the  silver  mine  owners  to  take  the  most  valuable  mode  of  payment, 
which  would  probably  be  Treasury  notes  redeemable  in  "coin."  July  1,  1892, 
Mr.  Stewart  offered  another  measure  in  the  Senate,  providing  for  free  coin- 
age and  making  the  standard  silver  dollar  legal  tender  for  all  debts  and  dues, 
public  and  private,  "provided  that  foreign  silver  coins,  or  silver  coins  bear- 
ing the  impress  of  foreign  mints,  and  bullion  formed  by  melting  down  such 
coin,  shall  be  excluded  from  the  provision  of  this  act." 

In  this  measure  Senator  Stewart  sought  to  fasten  legislation  upon  the 
country  by  which  it  would  have  been  obliged  to  take  the  product  of  the 
Western  silver  barons  as  it  was  offered  for  free  coinage.  Commenting  upon 
this  purpose.  Senator  Vest,  of  Missouri,  declared  that  he  was  for  free  coin- 
age, "not  to  give  a  market  to  the  mine  owners  of  the  West,  but  because  it  is 
a  money  metal,"  and  the  foreign  clause  was  stricken  out. 

All  of  these  measures  were  in  the  direct  interest  and  to  the  sole  advan- 
tage of  the  mine  owners.  All  profits  or  gains  in  the  business  went,  not  to 
the  Government  to  help  to  lighten  the  burden  of  the  people,  but  for  the 
profit  and  gain  of  a  particular  class, 

PROFITS  OF  SEIGNIORAGE. 

Let  us  see  what  these  profits  were.  Under  free  coinage,  on  an  average, 
in  1878  bullion  worth  89.1  cents  when  deposited  by  the  mine  owner  would 
have  entitled  him  to  receive  from  the  mint  a  legal-tender  dollar  worth  100 
cents  in  silver  or  in  gold.  He  would  have  made  a  net  profit,  not  counting  the 
small  charge  for  coinage,  of  10  cents — a  profit  gained  at  the  expense  of  the 
whole  people. 

In  1886  this  same  bullion  was  worth  only  76.9  cents,  giving  to  this  same 
class  a  net  profit  of  23  cents  and  making  a  net  cost  to  all  the  people  of 


18 

23  cents  for  the  inestimable  privilege  of  allowing  the  mine  owners  the  chance 
of  using  the  Government  and  people  of  the  United  Stares  as  a  stalking  horse. 
It  would  make  their  dollars  cheaper  to  the  mine  owners,  of  course.  How 
would  it  help  those  who  had  to  buy  these  same  silver  dollars  by  the  sweat  of 
their  brows  and  at  the  full  price  of  100  cents  on  the  dollar? 

WHAT   FREE   COINAGE  WOULD   HAVE   COST. 

Let  us  calculate  the  result  of  such  financial  legislation;  let  us  see 
what  it  would  have  cost  the  people  of  the  United  States  to  have  given 
the  free  coinage  at  the  dates  stated. 

In  1878  the  average  cost  of  silver  bullion,  enough  to  make  a  standard 
silver  dollar,  was  89  cents.  In  that  year  we  coined  22,495,550  of  these 
dollars.  At  11  cents  on  the  dollar  it  would  have  cost  the  country  just 
$2,474,510.50  to  have  thus  accommodated  the  silver-mining  interests  of 
the  country. 

A  statement  prepared  at  the  Mint  Bureau  shows  that  the  number  of 
silver  dollars  coined  at  the  United  States  Mints  during  the  fiscal  year 
ended  June  30,  1897,  was  21,203,701,  on  which  the  seigniorage  or  profit 
to  the  Government  amounted  to  $6,336, 104.25.  This  profit  was  turned 
into  the  Treasury  from  time  to  time  as  the  coinage  progressed,  and  w^as 
used  to  reduce  taxation  instead  of  wandering  into  the  pockets  of  the 
silver  producers,  as  would  have  been  the  case  under  free  coinage.  A 
more  monstrous  instance  of  attempted  diversion  of  public  money  was 
never  attempted. 

THE  SHERMAN  LAW. 

Under  the  operation  of  the  Sherman  law  of  1890  it  was  found  that  the 
Government  was  purchasing  54,000,000  ounces  of  silver  per  year,  or  nearly 
all  that  was  produced  in  the  United  States.  This  silver  was  stored  in  the 
Treasury  vaults,  and  Treasury  notes  issued  for  the  same,  which  were  re- 
deemable in  gold  on  demand.  It  can  be  readily  seen  that  it  would  be  only 
a  question  of  time  when  the  Government  would  be  obliged  to  suspend  gold 
payments  and  reach  a  silver  basis  if  this  were  continued. 

REPEAL   OF  THE   SHERMAN  LAW. 

At  a  special  session  of  the  Fifty-third  Congress,  called  in  August,  1893, 
after  a  long  and  spirited  debate,  the  so-called  Sherman  law,  on  Novem- 
ber 1,  was  repealed. 

AMOUNT  OF  SILVER  IN  USE   AS  MONEY. 

There  is  a  widespread  misunderstanding  as  to  the  actual  amount  of 
silver  in  use  as  money  by  the  Government.  According  to  the  statistics  of 
the  Director  of  the  Mint  for  1897,  there  was  coined  into  silver  dollars,  which 
are  either  in  circulation  or  lodged  in  the  Treasury  vaults,  silver  bullion  to 
secure  Treasury  notes,  and  subsidiary  silver,  the  ouormous  amount  of  $634,- 
509,781,  all  of  which  is  in  actual  use  as  money.  The  total  amount  of  gold  in 
use  in  the  United  States  July  1,  1897,  was  ?696,270,542,  and  of  greenback» 
$346,681,016, 


So  it  will  be  seen  that  there  is  almost  as  much  silver  in  use  as  any  othef 
kind  of  money,  and  I  believe  it  would  be  greatly  to  the  interest  of  the  Gov- 
ernment and  of  the  people  if  all  paper  money  under  $5  could  be  retired  and 
the  silver  dollar  put  in  its  place  to  do  its  work,  instead  of  being  stored  in 
the  Government  ^  aults.  This  is  the  case  in  France,  Germany,  and  England, 
where  but  very  little,  if  any,  paper  or  gold  can  be  found  of  a  less  denomination 
than  £1  in  England,  20  marks  in  Germany  and  20  francs  in  France,  practi- 
cally approximating  $5  of  American  money. 

REPUBLICANS   TRUE  TO   THEIR  PRINCIPLES. 

These  are  official  figures,  from  which  every  intelligent  citizen  should 
be  able  to  draw  his  own  conclusions  without  further  comment.  They  em- 
body to  a  great  extent  the  record  of  the  Republican  party  on  the  wisest  legis- 
lation now  on  our  statute  books  dealing  v/ith  our  finances  and  the  elements 
of  permanent  prosperity.  The  Republican  party  has  again  taken  the  initia- 
tive in  bringing  order  out  of  chaos,  and,  under  the  leadership  of  an  able, 
patriotic,  and  statesmanlike  Chief  Executive,  President  McKinley,  is  loyally 
carrying  out  the  principles  of  the  platform  adopted  by  the  St.  Louis  con- 
vention in  1896. 

In  harmony  with  the  spirit  of  that  platform,  and  in  response  to  the  de- 
mands of  nine-tenths  of  the  suffering  business  interests  of  the  United  States, 
the  President  called  Congress  together  in  special  session  to  repeal  the  Wilson 
bill.  Congress  enacted  the  Dingley  bill,  which  is  now  in  full  force  and  effect, 
and  its  beneficial  influence  is  already  making  Itself  felt  in  every  section  of 
the  country. 

The  President,  as  one  of  the  first  acts  of  his  Administration,  appointed  a 
commission  to  go  to  Europe  to  seek  the  establishment  of  an  equitable  ar- 
rangement with  the  leading  commercial  powers  of  the  world  for  the  use  of 
both  silver  and  gold  within  the  limits  of  a  safe  and  stable  international 
policy,  while  he  has  also  sent  to  Congress  a  message  urging  the  appointment 
of  a  non-partisan  monetary  commission  to  recommend  supplementary  legisla- 
tion for  the  improvement  of  our  banking  and  currency  system  along  neces- 
sary and  expedient  lines.  The  House  of  Representatives  promptly  adopted  a 
resolution  in  harmony  with  this  message.  Thus  the  Republican  party  is 
loyally  and  fearlessly  living  up  to  its  principles. 

I  have  endeavored,  Mr.  Speaker,  in  these  few  remarks,  to  give  a  history  of 
the  finances  of  this  Governme'nt  since  the  war;  also  showing  the  production 
of  silver  and  gold  for  the  past  three  hundred  and  fifty  years,  believing  that 
the  enormous  production  of  silver  during  the  past  twelve  years  has  had  much 
to  do  with  its  present  bullion  value. 


(No.  6.) 


OIR  PENSION  UWS 


What  the  Fifty-Fifth  Conj^rcss  Has  Done 


A  SLANDER  REFUTED 


FROn  THE  SPEECH  OF 

Hon.  GEORGE  W.  RAY, 

OF  NEW  YORK. 


IN  THE  HOUSE  OF  REPRESENTATIVES, 
July  7,  1898. 


OUR  PENSION  LAWS. 


Mr.  Ray  said: 

During-  the  Fifty-fifth  Congress  3,825  private  pension  bills  have  been 
introduced  in  the  House  alone  and  referred  to  the  Committee  on  Invalid 
Pensions,  and  629,  and  possibly  some  more,  have  been  introduced  and  re- 
ferred to  the  Committee  on  Pensions.  The  most  of  the  629,  however,  refer 
to  service  in  wars  other  than  the  war  of  the  rebellion. 

March  31,   1898,  the   number  of  army   and  navy  invalid   pensioners 

under  g-eneral  law   (soldiers  and  seajnen)   was 334,624 

The  number  of  army  and  navy  invalid  pensioners  under  act  of  June 

27,    1890    (soldiers   and   seamen),    was 409,051 

Total    743,675 

At  least  20,000  of  those  pensioned   under  the  g'eneral   law  did   not 

serve  in  the  war  of  the  rebellion,   ttierefore  deduct   20,000 

Soldier  and  seaman  pensioners  of  rebellion 733,675 

A  SLANDER  REFUTED. 

As  the  survivors  of  that  war  number  at  least  1,064,524,  it  will  be  seen 
that  THE  OFT-REPEATED  SLANDER  THAT  MORE  MEN  ARE  DRAW- 
ING PENSIONS  AS  SURVIVORS  OF  THE  WAR  OF  THE  REBELLION 
THAN  THERE  ARE  LIVING  OP  THAT  CLASS  IS  FULLY  ANSWERED 
AND  REFUTED. 

About  one-third,  340,849,  of  the  surviving  soldiers,  sailors,  and  marines 
who  served  in  the  war  of  the  rebellion  are  not  on  the  pension  rolls. 

WHAT  THE  FIFTY-FIFTH  CONGRESS  HAS  DONE. 

During-  the  present  Congress  the  Senate  has  passed  and  sent  to  the 
House  313  private  pension  bills  referred  to  the  Committee  on  Invalid  Pen- 
sions. 

During-  the  Fifty-fifth  Congress,  and  we  now  approach  the  close  of 
the  first  regnilar  session,  during  which  all  of  ©ur  pension  work  has  been 
done,  the  Committee  on  Invalid  Pensions,  of  which  I  have  the  honor  to 
be  chairman,  has  reported  to  the  House  478  private  pension  bills,  of  which 
408  have  passed  the  House,  and  254  have  already  passed  both  Houses,  been 
signed  by  the  President,  and  are  now  laws.  There  has  been  no  contention 
over  the  bills  reported  and  no  man  on  either  side  has  claimed  the  aouount 
reported  to  be  excessive  or  undeserved  except  in  two  cases. 

The  Committee  on  Pensions  «f  the  House  has  reported  and  passed  77 
private  pension  bills,  of  which  61  have  passed  both  Houses  and  are  now 
laws.     The  total  number  of  private  pension  bills  that  have  been  reported 


favorably  to  the  House  during-  the  Fifty-fifth  Congress  1b  555,  and  the  total 
number  passed  is  485,  of  which  322  have  already  become  laws.  Some  20 
await  the  signature  of  the  President. 

As  some  of  our  Democratic  friends  for  political  effect  have  spread  the 
false  report  that  this  Republican  Administration  and  this  Republican  Con- 
gress are  unfriendly  and  unfavorable  to  the  old  soldiers,  it  is  well  to  com- 
pare the  work  of  this,  the  Fifty-fifth  Congress,  in  special  pension  legisla- 
tion with  the  work  of  the  Fifty-second  and  Fifty-third  Congresses,  both 
of  which  w^ere  Democratic. 

The  Fifty-third  Congress  (Democratic)  passed  a  grand  total  of  only 
119  special  pension  bills  during'  its  three  sessions,  its  entire  life. 

The  Fifty-second  Congress  (also  Democratic)  passed  a  grand  total  of 
217  private  pension  bills  during  both  its  sessions,  its  entire  life.  These 
two  Democratic  Congresses  during  their  five  sessions  passed  a  grand  total 
of  .336  pension  bills. 

The  House  in  the  Fifty-fifth  Congress  (Republican)  has  in  seven 
months  of  one  session  reported  and  passed  485  private  pension  bills, 
or  149  more  than  did  both  the  two  preceding  Democratic  Congresses 
during  their  five  sessions  and  tkeir  entire  unfortunate  existence.  The 
Fifty-fourth  Congress  during  its  entire  life,  both  sessions,  only  passed 
a  total  of  378  private  pension  bills  that  became  laws,  107  less  than 
have  already  passed  the  House  in  the  Fifty-fifth  Congress, 

J  Mr.  RIDGELY.  Will  the  gentleman  tell  us  the  number  of  bills  intro- 
duced? 

Mr,  RAY  of  New  York.  I  am  going  to  give  it  to  you.  There  were  more 
introduced  than  now  or  about  the  same  nvimber. 

It  is  hardly  proper  or  consistent  or  honest  for  oiir  Democratic  friends,  in 
view  of  these  facts,  to  claim  that  this  Congress  is  unfriendly  to  the  soldiers 
and  their  widows  and  orphans  or  that  it  is  a  do-nothing  Congress  in  pension 
legislation.  NO  FAVORITISM  HAS  BEEN  SHOWN;  AND  PENSION  BILLS 
INTRODUCED  BY  DEMOCRATIC  AND  POPULIST  MEMBERS  HAVE  HAD 
THE  SAME  ATTENTION  AND  CONSIDERATION  ACCORDED  THOSE  IN- 
TRODUCED BY  REPUBLICANS. 

PENSIONS  NOW  PAID. 

On  the  3l8t  day  of  March,  1898,  we  had  on  the  pension  rolls  the  following 

pensioners: 

Under  general  law: 

Army  invalid    (soldiers) 329,787 

Navy  invalid   (seamen,  etc.) 4,837 

334,624 

Under  act  of  June  27,  1890: 

Army   invalid 394,702 

Navy    invalid 14,349 

409,051 

Total  soldiers,  sailors,  and  marines 743,675 


6 

Under  general  law:  '" 

Army  widows  and  dependent  relatives 93,376 

Navy  widows  and  dependent  relatives 2,320 

95,596 

Under  act  of  June  27,  1890: 

Army  widows  and  dependent  relatives 118,056 

Navy  widows  and  dependent  relatives 5,907 

— —  123,963 

Total  widows  and  dependent  relatives 219,561 

Army  nurses 644 

Total  pensioners,  war  of  the  rebellion 963,880 

Revolutionary   pensioners 16 

War  of  1812  pensioners 2,523 

Mexican  war  pensioners 18,293 

Indian  wars  pensioners 6,262 

Total  pensioners  March  31,  1898 990,974 

in  truth,  about  1  person  out  of  every  70  of  our  population  draws  a  pen- 
sion from  the  General  Government. 

In  1897  we  paid  pensions  to  the  amount  of $139,949,717.35 

I'aid  pension  agents  for  disbursing 572,439.41 

Paid  expenses  of  Pension  Bureau. 3,415,343.66 

Total  expenses,  year  ending  July  1,  1897 143,937,500.42 

During  the  fiscal  year  ending  July  1,  1898,  we  have  paid,  in  round  num- 
bers, $148,000,000  to  our  pensioners. 

WOBK   OF   THE  PENSION   BUREAU. 

Much  has  been  said  importing  that  the  present  Administration  in  its  ad- 
ministration of  the  pension  laws  through  the  present  Commissioner  of  Pen- 
sions, Hon.  H.  Clay  Evans,  has  been  and  is  unfriendly  to  the  pension  system 
and  to  the  old  soldiers  and  their  widows  and  orphans.  A  certain  class  of 
pension  agents  and  attorneys  and  Democrats  (called  statesmen)  have  been 
exceedingly  busy  spreading  this  report.  For  a  year  or  more  during  the  last 
of  the  Administration  of  President  Cleveland  pensioners  were  advised  to  hold 
back  their  claims  pending  the  approaching  election  and  to  present  and  press 
claims  for  pension  and  increases  as  soon  as  the  new  President  (certain  to  be 
a  Republican)  should  be  inaugurated. 

The  result  was  that  Commissioner  Evans  found  the  Bureau  "swamped" 
under  a  mass  of  new  applications.  The  eager  and  expectant  applicants  could 
brook  no  delay.  They  seemed  to  expect  the  immediate  allowance  of  every 
claim  filed,  whether  for  orig'inal  pension,  increase,  or  restoration  to  the  rolls. 
They  did  not  pause  to  consider  that  such  action  would  be  impolitic,  unwise, 
and  unjust.  The  propriety  and  necessity  of  a  thorough  examination  of  each 
individual  case  was  a  consideration  not  to  be  entertained,  and  as  a  result 
there  was  considerable  friction  between  pension  attorneys  and  the  Com- 
missioner. 

6 


BUT  THE  WORK  OP  THE  BUREAU,  IMPEDED  AS  IT  IS  BY  THE 
PRESENCE  OF  MANY  INCOMPETENT  CLERKS  PLACED  THERE  BY  A 
DEMOCRATIC  ADMINISTRATION,  UNFRIENDLY  TO  THE  OLD  SOLD- 
IERS AND  TO  THE  PENSION  SYSTEM,  HAS  GONE  ON  UNCEASINGLY, 
LABORIOUSLY,  AND  FAITHFULLY.  A  comparison  of  work  done  and  of 
results  obtained  under  the  last  Administration  and  the  present  will  best  tell 
the  story. 

Comparison  of  i>ension  claims  allowed  and  disallowed  for  years  1894,   1895, 
and  1896,  and  1897  (nine  months  only  included). 


1894... 
1895.. 


1896 

1897  (9  months).. 


1894. 

1895 

1896 

1897  (9  mouths )„ 


1894. 

1895 

1806 

1897  (9  months). 


1895 

1896 

1897  (9  month;!).. 


1894,  1895, 1896.. 
1897  (9  months).. 


1894, 1895,  1896... 
1897  (9  months).. 


1894, 1895, 1896... 
1897  (9  months).. 


1894, 1895, 1896... 
1897  (9  months).. 


Year. 


General  law— original. 


Ad  of  i^OQ— original. 


General  lair — increase. 


Act  of  1 890  -  incr'-'ise. 


G'neral  laic — original. 


GeneraX  lau — increase. 


Act  of  \  890 — original. 


Act  of  IH90— increase. 


Allowed 
per  luontii. 


845 


6.t0 
a  803 


6  2,655 
c  2,710 
d  3,3^1 
e  4,118 


91S 

810 

1,(1.50 
9U1 


177 

844 

74J 


/719 

fSUS 


924 
961 


2,899 
4,118 


.270 
742 


per  iiiouih. 


1,653 
1,682 
1,807 
1,089 


4,271 
3,777 
3,171 
2,358 


1,892 
.1,639 
1,887 
1,165 


864 
1,4S| 
1,059 
1,071 


1,514 
1,089 


1,806 
1,165 


8,740 
2,358 


1,119 
1,071 


a  Or  31  per  day.  d  Or  128  per  day,  f  Or  27  per  day. 

b  Or  102  per  day.  e  Or  158  per  day.  g-  Or  31  per  day. 

c  Or  104  per  day. 

It  thus  appears  that  during  each  of  the  years  1894,  1895,  and  1896,  up  to 
March,  1897,  when  President  McKinley  was  inaugurated,  the  Democratic  Ad- 
ministration was  allowing  original  claims  under  the  general  law  at  the  rate 


of  27  per  day  and  rejecting  such  claims  at  the  rate  cyf  58  per  day.  It  was 
allowing  original  claims  under  the  act  of  1890  at  the  rate  of  111  per  day  and 
rejfteting  them  at  the  rate  of  143  per  day. 

Under  both  laws  it  was  allowing  138  original  claims  per  day  and  rejects 
ing  201  per  day. 

The  Kepublican  Administration  has  been  allowing  original  claims  under 
the  general  law  at  the  rate  of  31  per  day  and  rejecting  at  the  rate  of  41  per 
day.  It  has  been  allowing  original  claims  under  the  act  of  1890  at  the  rate  of 
158  per  day  and  rejecting  at  the  rate  of  90  per  day. 

Under  both  laws  it  has  allowed  189  original  claims  per  day  and  rejected 
131  per  day. 

ORIGINAL  CLAIMS. 


Republican  Administration.. 
Democratic  Administration. 


Allowed 
per  day. 


189 
138 


Rejected 
per  day. 


131 

201 


The  above  figures  relate  simply  to  original  claims  adjudicated. 

Now  let  us  take  claims  for  increase. 

The  Democratic  Administration  allowed  35  claims  for  increase  under  the 
general  law  per  day  and  rejected  69  per  da3^  It  allowed  of  claims  for  in- 
crease, under  the  act  of  1890,  10  per  day  and  rejected  43  per  day.  In  other 
words,  it  was  allowing  45  increase  claims  per  day  and  rejecting  112  per  day. 

The  EepubHcan  Administration  has  been  allowing  37  increase  claims  per 
day  under  the  general  law,  and  28  per  day  under  the  act  of  1890,  a  total  of 
65  per  day,  while  it  has  rejected  44  increase  claims  under  the  general  law  per 
day  and  41  of  such  claims  under  the  act  of  1890,  a  total  of  85  per  day. 

INCREASE  CLAIMS. 


Republican  Administration 

Democratic  Administration 

INCLUDINO   BOTH   CLASSES. 


Allowed 
per  day. 


Rejected 
per  day. 


85 
112 


Republican  Administration 

f      189 
t        65 

131 

85 

Total 

254 

216 

Democratic  Administration 

/       138 
1         45 

183 

201 

112 

Total „ 

313 

1 04185 


8 

It  is  seen  that  while  the  Democratic  Administration,  was  adjudicating' 
496  claims  per  day,  as  against  470  per  day  adjudicated  by  THE  REPUBLICAN 
ADMINISTRATION  SINCE  THE  RETURN  OF  THE  REPUBLICAN  PARTY 
TO  POWER,  THE  PENSION  OFFICE  UNDER  COMMISSIONER  H.  CLAY 
EVANS  HAS  ALLOWED  71  CLAIMS  PER  DAY  MORE  THAN  WERE  AL- 
LOWED UNDER  THE  FORMER  ADMINISTRATION^  WHILE  IT  HAS  RE- 
JECTED 97  LESS  PER  DAY. 

This  proves  beyond  any  controversy  whatever  that  while  the  Pension  Bu- 
reau has  been  a  little  slower  in  adjudicating-  pension  claims  since  !March  4, 
1897,  than  prior  to  that  date,  the  work  done  has  inured  wholly  to  the  benefit 
of  the  old  soldier  and  of  hiswidowand  orphan.  Every  day  for  the  nine  months 
covered  by  these  figures  in  71  cases  more  than  under  the  last  Administration 
has  happiness  been  carried  to  the  family  of  some  old  soldier.  The  rates  al- 
lowed have  been  much  larger  also. 

Those  who  complain  of  tardiness  at  the  Bureau  and  who  are  inclined 
to  suggest  that  the  Administration  is  against  the  old  soldier  should  study 
the  figures  well  before  indulging  in  such  unwarranted  and  undeserved 
criticism. 

Our  Democratic  friends  who,  now  they  are  out  of  power,  would  pose 
as  the  soldier's  friend,  when  in  power  and  when  thej  had  an  opportunity 
to  do  something  for  the  needy  old  soldier  and  his  widow  and  orphan,  were 
slow  to  act  in  Congress  and  granted  pensions  and  increases  with  a  hesi- 
tating and  niggardly  hand,  as  we  have  seen. 

At  the  Pension  Bureau  they  struck  from  the  rolls  the  names  of  thous- 
ands of  needy  and  deserving  pensioners.  In  passing  on  claims  they  were 
swift  to  adjudicate  unfavorably  but  exceedingly  slow  to  allow  pensions. 
Let  the  old  soldiers  remember  the  few  bills  passed ;  the  many  vetoed ;  the 
fact  that  at  the  Bureau  of  Pensions  in  1894  and  1895  the  Democratic  Ad- 
ministration allowed  34  per  cent,  of  the  claims  examined  and  rejected  66 
per  cent ;  that  in  1896,  when  it  did  its  best,  trying  to  influence  the  elec- 
tion, it  only  allowed  42  per  cent,  and  rejected  58  per  cent. 

During  the  entire  year  since  H.  Clay  Evans  became  Commissioner  of 
Pensions  154,445  pension  claims  have  been  finally  adjudicated,  and  of  these 
79,298,  or  52  per  cent,  have  been  allowed,  and  75,147,  or  48  per  cent,  have  been 
rejected  or  held  for  further  evidence.  The  Bureau  has  proceeded  with  great 
care,  and  in  thousands  of  the  cases  not  allowed  the  Bureau  has  held  and  is 
holding  them  for  additional  necessary  evidence.  There  has  been  no  veto  of  a 
special  pension  bill,  and  every  patriotic  citizen  knows  that  President  Mc- 
Kinley,  himself  an  old  soldier,  will  not  tolerate  an  illiberal  pen.sion  policy  or 
an  injustice  to  an  old  comrade  in  arms. 

During  the  first  nine  months  of  the  present  fiscal  year  the  pension  roll 
was  increased  by  the  addition  of  15,000  more  names  than  were  lost  by  death, 
remarriage,  and  the  arrival  of  minors  at  the  age  of  16  years.  During  the 
year  ending  April  1,  1898,  the  loss  to  the  loll  v>as  as  follows: 

From   death 37,855 

Remarriage   1,421 

Minors  arrived  at  age 2,284 

Failure  to  claim  pension 3,563 

Other  causes 3,194 

Total , 48,317 


9 

During  the  ycnr  ending-  June  30,  1895,  37,OGO  original  claims  were  llled. 
For  the  year  1896,  33,749  such  claims  were  filed,  while  for  the  year  ending 
Ai>ril  1,  1898,  61,613  original  claims  and  164,438  claims  for  increase — a  total  of 
226,051 — were  filed.  It  is  easy  to  see  how  impossible  it  has  been  for  the 
Commissioner  to  examine  and  adjudicate  all  of  these  claims,  and  when  we 
consider  the  I'ejections  and  failure  to  reach  claims,  and  the  consequent  dis- 
appointments, in  connection  with  the  misrepresentations  made  by  politicians 
of  the  opposing  political  party  for  partisan  purposes,  it  is  not  difficult  to  un- 
derstand how  undeserved  is  the  criticism  to  which  the  Pension  Bureau  has 
been  subjected. 

Common  prudence  suggests  and  demands  that  every  case  be  thoroughlj' 
examined.  If  by  inadvertence  or  neglect  an  undeserved  pension  is  allowed, 
the  enemies  of  the  pension  system  and  of  the  old  soldiers  themselves  sei/t; 
upon  the  fact  and  herald  it  far  and  wide  as  an  evidence  of  laxness  and  cor- 
ruption in  the  Pension  Bureau  and  of  frauds  on  the  part  of  the  pensioners 

themselves. 

A  ROLL  OF  HONOR. 

No  class  of  citizens  in  our  great  country  is  more  interested  in  a.  just  and 
an  honest  administration  of  the  pension  laws  than  the  old  soldiers.  The 
pension  roll  always  has  been,  now  is,  and  always  must  be  maintained  "a 
roll  of  honor,"  The  fact  that  an  old  soldier's  name  appears  on  that  roll 
should  guarantee  that  he  was  a  loyal  man,  that  he  was  a  brave  man,  that  he 
served  faithfully  and  honorablj^  and  that  he  received  wounds  or  incurred 
disabilities  in  the  service  and  in  the  line  of  duty,  or  that  he  is  now  suffering 
from  disabilities  that  prevent  his  earning  a  support  by  his  naanual  labor. 

The  generous  hand  of  a  just  Government  will  always  be  open  to  such  as 
these;  and  our  patriotic  people,  loving  liberty  and  good  government,  de- 
termined that  our  institutions  shall  endure,  proud  of  our  past  and  confident 
of  our  future  as  a  nation,  admiring  the  defenders  of  tlie  national  honor  and 
life  and  ever  willing  to  give  them  encouragement  and  recognize  their  brave 
deeds  and  care  for  those  who  defended  the  flag  when  it  needed  defenders, 
or  who  shall  hereafter  inscribe  additional  g-lorious  victories  upon  its  broad 
and  ample  folds,  will  not  fail  to  maintain  and  perpetuate  our  pension  system. 

But  honors  are  for  those  to  whom  honor  is  due,  and  pensions  are  for  the 
deserving.  The  j)ension  laws  should  be  so  framed  and  so  executed  as  to  cre- 
ate confidence  in  the  minds  of  all  our  citizens  that  the  $150,000,000  annually 
expended  under  their  pi-ovisions  is  given  to  those  who  have  just  claims  uijon 
the  resources  and  generosity  of  a  grateful  Republic. 

This  large  amount  of  money  to  meet  the  just  claims  of  our  pensioners 
will  be  required  but  a  few  years  longer.  Year  by  year  the  soldiers  and 
sailors  and  marines  and  their  widows  are  answering  to  the  last  roll  call.  In 
a  very  few  years  the  last  survivor  of  the  Mexican  and  Indian  wars  will  be 
in  his  grave,  and  fifty  years  hence  the  last  survivor  of  the  war  of  the  rebel- 
lion will  have  passed  over  the  river  to  his  eternal  rest  under  the  shade  of 
the  trees  on  the  evergreen  shores. 

Nearly  all  who  incurred  pensionable  disabilities  in  the  service  are  now 
on  the  rolls  and  the  main  additions  by  reason  of  past  serAdce  will  come  in 
under  the,  act  of  June  27,  1890,  where  the  maximum  allowed  is  $12  per 
month. 


1« 

THE  DEATH  BOLL. 

During  the  last  five  years  pensioners  have  died  as  follows; 

1893   25,005 

1894    28,070 

1895    27,816 

1896    29,393 

1897    31,960 

As  only  two-thirds  of  the  survivors  are  on  the  rolls,  it  is  safe  to  say  that 
at  least  25,000  of  the  comrades  of  the  war  of  the  rebellion  die  each  year. 

By  reason  of  deaths  and  other  causes  the  decrease  in  pension  payments 
in  1897  was  $5,684,081.  The  increase  in  the  figures  before  given  was  caused 
by  the  addition  of  new  names  and  the  granting  of  increase  applications.  It 
will  be  seen  that  when  the  addition  of  new  names  in  considerable  numbers 
ceases  the  decrease  in  the  amount  of  pension  payments  will  be  very  rapid. 

A  SAMPLE  OF  PLAIN  MISREPRESENTATION. 

As  a  sample  of  plain  evasion  of  truth  and  misrepresentation  I  insert  the 
following  letter,  written  by  a  Democratic  member  of  this  House,  who,  at  the 
writing,  had  had  three  of  his  own  bills  favorably  reported  and  one  passed 
and  become  a  law  by  the  approval  of  the  President.  As  the  cases  were  meritor- 
ious, the  committee  is  proud  of  its  action,  but  must  express  its  regret  that 
the  beneficiaries  of  the  bills  referred  to  are  represented  by  a  gentleman 
whose  attainments  in  a  certain  direction  indicate  that  he  is  a  lineal  descend- 
ant of  Ananias  and  Sapphira,  and  that  he  is  fully  able  and  willing'  to  inaSn- 
tain  the  reputation  of  the  Ananias  family. 

[Fifty -fifth  Congress.  Josiah  D.  Hicks,  Pa.,  chairman;  Edward  Sauerhering. 
Wis.;  Winfield  S.  Kerr,  Ohio;  John  M.  Mitchell,  N.  Y.;  Walter  Reeves. 
111.;  William  C.  Lovering,  Alass.;  James  H.  Davidson,  Wis.;  William  L. 
Ward,  N.  Y.;  William  Sulzer,  N.  Y.;  Champ  Clark,  Mo.;  Thomas  Y.  Fitz- 
patrick,  Ky.;  James  R.  Campbell,  111.;  John  H.  Stephens,  Tex.  T.  S.  Davis, 
clerk.] 

Committee  on  Patents, 
House  of  Representatives  United  States, 

Washington,  D.  C,  April  28,  1898. 
Dear  Madam:  I  have  your  letter  of  late  date.  If  there  is  any  earthly 
way  to  pass  a  pension  claim  through  this  Congress,  I  havie  failed  to  discover 
it.  Occasionally  a  Republican  Congressman  gets  one  through  for  the  rich 
widow  of  some  officers,  but  for  a  Democrat  to  get  one  allowed  for  some  wor- 
thy poor  woman  or  man  seems  impossible.  I  do  not  expect  to  get  one  bill 
passed  out  of  sixty-five  introduced  by  me.  The  Dingley  bill  does  not  bring 
in  enough  money  to  run  the  Government,  and  the  Republicans  are  trying  to 
make  the  pensioners  pay  the  balance  by  keeping  them  out  of  their  just  dues. 

Yours,  very  truly, 

CHAMP  CLARK. 
Mrs.  Ltdia  Loluia,  Sullivan,  Mo.    °  ^ 


I 


11 

Remember,  the  gentleman  from  Missouri  had  had  three  of  his  own  bills 
favorably  reported  and  one  passed  and  approved  by  the  President. 

The  Ding-ley  bill  has  done  remarkably  well  in  bringing  in  money,  and 
this  Congress  has  done  more  for  the  old  soldiers  and  their  widows  and 
orphans  in  seven  months  than  the  Democratic  party  did  in  four  years. 
The  Dingley  tariff  bill  will  more  than  support  the  Government,  aside  from 
the  expenses  of  the  war,  and  even  Democrats  know  or  ought  to  know  the 
fact. 

It  may  be  that  the  gentleman  who  wrote  that  letter  had  not  discovered 
any  "earthly  way"  to  pass  a  private  pension  bill  through  the  Fifty-fifth  Con- 
gress; but  the  Committee  on  Invalid  Pensions  had  discovered  the  way,  and 
had  steadfastly  and  patriotically  pursued  it. 

PENSION  TO  BELIEVE  THE  PHESSINO  NECESSITIES  AND  WANTS 
OF  THE  NEEDY  AND  DESERVINQ. 

At  the  time  that  letter  was  written  its  author  knew  that  more  than  250 
private  pension  bills  had  already  been  reported  favorably  to  the  House,  and 
that  more  than  150  had  passed.  He  also  knew,  or  ought  to  have  known,  that 
nearly  every  one  was  in  aid  of  a  private  soldier,  a  private  soldier's  widow,  or 
a  dependent  child  or  parent  of  some  defender  of  the  flag  long  since  dead.  He 
also  knew,  or  might  have  known,  that  in  every  case  the  pension  or  increase 
of  pension  had  been  given  to  relieve  the  pressing  necessities  and  wants  of 
the  needj^  and  deserving  claimant.  He  also  knew,  or  might  have  known, 
that  the  Fifty-fifth  Congi'ess  has  reported  115  pension  bills  introduced  by 
Democratic  and  Populist  members  of  this  House,  many  more  than  their 
proportion. 

If  the  gentleman  pleads  ignorance  of  the  facts,  he  still  stands  before  the 
bar  of  public  opinion  convicted,  for  he  who  asserts  as  a  fact  something  he 
does  not  know  is  equally  guilty  with  the  one  who  wilfully  misstates  a  fact 
within  his  knowledge.  I  regret  the  necessity  of  calling  attention  to  this 
letter,  but  in  no  other  way  can  I  defend  the  Fifty-fifth  Congress  against  this 
gi-oss  and  outrageous  slander.  In  no  other  way  can  I  reach  the  ten  hundred 
thousand  old  soldiers  whose  minds  the  gentleman  would  seek  to  poison  by 
such  misrepresentation.  The  baseness  of  the  slander  will  the  more  fully 
appear  as  I  proceed. 

CHARGES  FALSELY  AND  EVIDENTLY  MALICIOUSLY  MADE. 

I  shall  be  pardoned  for  exhibiting  some  considerable  feeling  on  this  sub- 
ject for,  as  I  am  charged,  as  chairman  of  the  Committee  on  Invalid  Pensions, 
with  caring  for  the  rights  of  the  old  soldiers,  my  comrades  of  thirty-three 
years  ago,  and  with  whom  I  marched  and  "drank  from  the  same  canteen," 
the  statement  is  a  personal  reflection  on  me,  and  the  Committee  on  Invalid 
Pensions,  as  well  as  the  llepublican  party  and  the  Fifty-fifth  Congress.  I 
regret  being  compelled  by  this  letter  and  many  more  of  the  same  false  tenor 
now  in  my  possession,  to  give  any  partisan  tinge  to  these  remarks,  but,  sir, 
when  such  charges  are  falsely  and  evidently  maliciously  made,  my  plain  duty 
as  a  citizen,  and  as  a  member  of  tlllS  House  demands  that  the  truth  be 
plainly  and  fearlessly  spoken.     ^ 


I 


12 

More  than  1,500  private  pension  bills,  with  all  the  papers  on  file  at  the 
Bureau  and  the  great  mass  of  testimony  filed  with  the  committee,  hav«v  i>€en 
carefully  examined  and  considered  by  the  Committee  on  Invalid  Pensions 
alone.  But  one  bill  allowing  a  pension  or  an  increase  of  pension  in  excess  of 
$50  per  month  has  passed  the  House,  and  that  was  given  to  a  private  soldier. 
Only  two  bills  granting  pensions  or  increasing  the  pensions  of  general 
officers  have  been  repoi-ted,  and  only  twelve  bills  granting  pensions  or  in- 
creasing the  pension  of  general  officer's  widows  have  been  reported. 

One  bill  has  been  reported  and  passed  increasing  the  pension  of  a  widow 
of  a  commander  in  the  United  States  Navy,  and  one  increasing  the  pension 
of  the  widow  of  a  captain  in  that  service. 

CAREFUL    ATTENTION    TO    THE    CLAIMS    OF    PRIVATE    SOLDIERS 
AND   OF   THEIR  WIDOWS  AND   HELPLESS   CHILDREN. 

Particular  and  careful  attention  has  been  given  to  the  claims  of  private 
soldiers  with  good  records  and  of  their  widows  and  dependent,  helpless 
children,  and  in  every  case  where  a  pension  or  an  increase  has  been  asked  for 
any  person,  recogfnition  has  been  refused  unless  the  necessitous  circumstan- 
ces of  the  applicant  justified  and  demanded  action.  It  should  be  remembered 
by  the  old  soldiers,  officers  and  privates  alike,  and  by  the  Representatives  in 
Congress,  that  the  Government  has  not  undertaken,  does  not  undertake,  to 
f  ullj^  support  the  old  soldiers,  seamen,  or  marines,  or  their  widows,  but  only 
to  afford  a  reasonable  degree  of  aid.    This  is  all  any  nation  assumes  to  do. 

Mr.  FAE.RIS.    May  I  ask  the  gentleman  a  question? 
■)  Mr.  EAY  of  New  York.    Certainly. 

Mr.  FARIS.  I  should  like  to  ask  my  friend  to  state  to  the  House  if  it  is 
true  that  he  has  received  the  orig-inal  of  that  letter  which  he  read. 

Mr.  RAY  of  New  Yoi-k.  I  have  seen  the  original  letter.  It  is  on  file  at 
the  Pension  Bureau.  But  I  will  not  call  the  names  of  other  gentlemen  of  this 
House.  This  is  the  wickedest  letter  of  them  all,  but  I  have  five  more  writ- 
ten by  Democratic  members  of  this  House  making  the  same  charge  and  to 
the  same  effect. 

Mr.  CANNON.  Mr.  Speaker,  if  it  does  not  discommode  my  friend  I  would 
like  to  ask  him  just  in  that  connection  if  it  is  not  true  that  in  the  Pension 
Office,  under  the  general  pension  laws,  in  the  lately  expired  fiscal  year,  in 
the  settlement  of  pension  claims,  there  has  not  been  $8,000,000  more  expended 
than  was  expended  during  the  prior  year? 

Mr.  RAY  of  New  York.  I  have  that  here  and  I  am.  coming  to  it  in  just 
a  moment. 


(No.  7) 


PROSPERITY 
SINCE  MCKINLEY'S  ELECTION 


REPUBLICAN  PLEDGES  KEPT 


HELP  FOR  CUBA 


FROM  THE  REMARKS  OF 

Hon.  Thaddeus  M.  Mahon 

OF  PENNSYLVANIA 
IN  THE  HOUSE  OF  REPRESENTATIVES 


Part  of  Congressional  Record,  August  3,  1898 


> 


PROSPERITY  SINCE  McKINLEY'S 
ELECTION. 


Mr.  MAHON  said : 

Mr.  Chairman  :  I  desire  to  incorporate  as  part  of  my  remarks 
the  following  article  from  the  columns  of  the  New  York  Tribune : 

It  is  just  two  years  since  the  Republican  party  in  its  conven- 
tion at  St.  Louis  nominated  William  McKinley  and  promised  in  its 
platform  to  do  certain  things  in  case  it  should  be  again  intrusted 
with  the  control  of  national  affairs.  These  things  were,  in  brief, 
the  adoption  of  a  protective  tariff,  which  should  benefit  the 
American  manufacturer  and  producer  ;  reciprocity,  which  would 
add  to  the  profits  of  the  agriculturist  ;  a  sound  currency  and  inter- 
national bimetalism,  if  possible,  and  that  the  Government  of  the 
United  States  should  ''  use  its  influence  and  good  offices  to  restore 
j)eace  and  give  independence  to  the  island  of  Cuba."  It  is  interes- 
f  ting  at  this  time  to  see  how  these  promises  have  been  kept  and 
wliat  has  been  the  result. 

TARIFF. 

President  McKinley  was  inaugurated  on  March  4th.  He  im- 
mediately called  Congress  to  meet  in  extra  session,  beginning  on 
March  loth.      The  President's  message  dealt  wholly  with  the  tariff 


1  PROSPERITY  SINCE   Mi  KINLEY'S  ELECTION. 

and  urged  immediate  action.  The  tariff  bill  was  iiitrodueed  in  tlie 
1  louse  on  the  first  day  of  the  session,  and  pa.ssed  that  body  fifteen 
days  later,  March  31st.  Owing  to  the  fact  that  the  Republicans 
did  not  control  the  Senate,  it  was  impossible  to  make  as  rapid  progress 
in  that  body  as  in  the  House,  but  notwithstanding  this  fact  the  bill 
passed  the  Senate  on  July  7th  and  became  a  law  on  July  24th.  No 
Administration  since  that  of  Washington  has  brought  about  the"  en- 
actment of  a  tariff  law  within  so  brief  a  period  after  its  inauguration. 


TEN  MONTHS'  RECORD  UNDER  THE  DINQLEY  ACT— RECEIPTS 

$1,000,000  A  DAY. 

Now,  as  to  the  course  of  the  conunerce  and  national  finance  since 
the  enactment  of  this  new  and  thoroughly  ]irotective  tariff  law,  com- 
])ared  with  the  conditions  under  the  tariff  act  which  preceded  it.  The 
new  law  has  now  been  in  operation  ten  months.  In  spite  of  the  fact 
that  excessive  importations  in  the  few  months  immediately  preceding 
its  enactment  passed  to  the  credit  of  the  Wilson  law,  probably  $40.- 
000,000  which  would  have  been  collected  under  the  new  law  but  for 
these  anticipatory  importations,  the  receipts  of  the  Treasury  have 
been  in  these  ten  months  of  its  operation  more  than  $30,000,000  in 
excess  of  those  of  the  corresponding  ten  months  of  the  history  of  the 
Wilson  hiw.  That  the  new  law  was  able,  under  normal  conditions, 
to  produce  sufficient  revenue  to  meet  the  current  expenses  of  the 
Government  is  shown  by  the  fact  that  the  receipts  during  the  last 
four  months,  in  the  face  of  war  and  the  consequent  disarrangement 
of  commerce,  have  averaged  $1,000,000  a  day. 

The  ordinary  expenditures  of  the  Goverinnent  during  the  last 
few  years,  aside  from  the  postal  service,  which  is  jjractically 
self-sustaining,  average  $1,000,000  a  day  the  year  round,  and 
the  fact  that  the  Dingley  law  has  produced  an  average  of 
$1,000,000  a  day  since  the  effect  of  the  antioi^^atory  imports 
ceased  to  be  felt  shows  that  its  framers  were  fully  justified 
in  their  belief  that  it  would  meet  the  ordinary  expenses  of 
the  (iovernment,  and   that    the    additions    which    hav^    recently 


I'KOSPERITY  SINCE  McKINLEY'.s  ELECTION.  5 

been  made  have  been  necessary  only  because  of  the  extraordi- 
nary expenses  resulting  from  the  war.  The  following  table  shows 
the  receipts  of  the  Government  in  the  first  ten  months  of  the  Ding- 
ley,  Wilson,  and  McKinley  laws  : 


A  COMPARISON  OF  RECEIPTS. 

Total  receipts  of  Treasury  (exclusive  of  Pacific  Railroad  sales), 
in  months,  as  follows: 


I'irst  ten  months  McKiuley 
Law. 

First  ten  months  Wilson         1        Fir.st  ten  inuiitlis  Diugley 
Law.                          j                          Law. 

Date. 

Amount. 

Date. 

Amount.         1           Date.           1        Amount. 

1 

Oct.   1890 

8,39,222,174 
28,678,675 
31,106.165 
36,810,23;^ 
29,273,173 
29,027,455 
25,465,232 
27,289,3(Hi 
31,631,850 
34,158,245 

»312,662,,508 

Sept.,  1894 

§22,621.229        ;Aug.,  1897 '       $19,023,615 

19,139,240         Sept.,  1897 2l.9.«.098 

Nov'.,  18;K) 

Oct..  1894 

Dec.  1890     . 

Nov.   1894 

19,411  404         Oot.,  1897 

24,391,415 
23,168,987 
27,931,494 
28,795,227 

.Ian  .  1891 

Deo.    1894 

21,8()(i,137         !Nov.,  1897 

Feb.,  1891 

.Jan.,  1895 

27,804,400       :Dec.,  1897 

Mar    1891 

Feb,,  1895 

Mar.,  1895 

Apr.,  1895 

May,  1895 

22,888,057         ,Tan.,  1898 

Apr    1891 

25,470,576         Feb.    1898 

28,572,358 
29.307,251 
30,361,443 
30,074,818 

May,'  1891 

24.247,830         Mar.,  1898 

,lune,  1891 

2),272,078        'Apr.,  1898 

.liilv.  1891 

June,  1895 

25,615,474        iMay,  1898 

S2:$4,336,431       1 

Total 

8265,559,71 

A  GAIN  OF   $157,000,000  IN  SALES  ABROAD  DURING  TEN 

MONTHS. 

When  the  Dingley  bill  was  under  consideration  the  free  traders 
insisted,  as  they  always  do,  that  tlie  adoption  of  the  protective  sys- 
ttnn  would  atfect  commerce  disadvantageously — would  reduce  Amer- 
ican markets  abroad.  Let  us  see  how  much  truth  there  was  in  this 
claim.  The  new  law  went  into  effect  during  the  first  month  of  the 
present  fiscal  year,  so  it  is  fair,  in  di.'^cussing  this  question,  to  con- 
sider the  entire  fiscal  year,  so  far  as  completed,  and  compare  it  with 
the  corresponding  months  of  the  preceding  fiscal  year.  Our  total 
sales  to  other  parts  of  the  world  during  the  first  eleven  months  of 
the  fiscal  year  amount  to  |1,1;]5,485,618,  against  $977,800,422  in 


6  PROSPERITY  SINCE  McKINLEY'S  ELECTION. 

the  corresponding  months  of  the  preceding  year.  Here  is  a  gain 
of  over  1157,000,000  in  our  sales  to  other  parts  of  the  world  in 
eleven  months  under  the  new  tariff  law.  Does  this  look  as  though 
the  protective  system  was  hampering  our  foreign  trade  or  reducing 
our  sale«  to  other  parts  of  the  world  ? 


EXPORTS  OF  MANUFACTURED  GOODS   SHOW  AN  INCREASE 
OF  $1,000,000  A  MONTH. 

Not  only  have  American  manufacturers  been  able  under  the 
Dingley  law  to  continue  their  competition  in  the  world's  markets, 
but  they  have  actually  increased  their  sales  of  American  manufac- 
tures more  than  $10,000,000  in  the  first  ten  months  of  the  fiscal 
year.  Thus,  in  spite  of  the  assertion  of  the  low  tariff  advocates 
that  the  protective-tariff  system  would  disadvantageously  affect  our 
foreign  commerce,  we  have  increased  our  exports  of  manufactured 
articles  at  the  rate  of  $1,000,000  a  month  since  the  enactment  of 
the  new  law,  and  our  total  exports  to  other  parts  of  the  world  at 
the  rate  of  $15,000,000  a  month,  making  a  total  nmch  greater  than 
in  any  corresponding  period  in  the  history  of  the  country.  Indeed, 
the  exports  of  the  eleven  months  of  the  fiscal  year  just  ended  are 
greater  than  in  any  entire  fiscal  year  in  the  history  of  the  country, 
and  the  balance  of  trade  is  much  larger  than  in  any  preceding  year. 
In  the  eleven  months  ending  May  31,  1898,  our  total  exports  were 
$1,135,485,618,  while  the  largest  exports  of  any  full  fiscal  year 
prior  to  this  were  (1897)  $1,050,993,556. 


COMPETITIVE  IMPORTS  REDUCED. 

Not  only  has  the  Dingley  law  fulfilled  the  promises  of  its  framers 
in  supplying,  under  normal  conditions,  sufficient  revenue  to  meet  the 
ordinary  expenses  of  the  Government,  and  show  an  increase  of  our 
exports  of  manufactures  and  our  general  sales  to  other  parts  of  the 
world,  but  it  has  at  the  san^e  time  reduced  the  imports  from  other 


PROSPERITY  SINCE  McKINLEY'S  ELECTION.  7 

paris  of  the  world  which  came  into  competition  with  our  manufac- 
turers. The  imports  in  the  first  eleven  months  of  the  present  fiscal 
year  amount  to  only  |563,596,581,  against  $679,547,391  in  the 
corresponding  months  of  the  preceding  year.  Thus,  while  we  have 
been  increasing  our  exports  $157,000,000,  we  have  decreased  our 
imports  $116,000,000. 

The  net  result  of  the  improvement  of  our  foreign  commerce 
since  the  enactment  of  the  Dingley  law  may  be  stated  in  a  sentence, 
as  follows  :  For  the  first  time  in  our  history  we  are  exporting  more 
manufactured  articles  than  we  are  importing,  and  for  the  first  time 
in  our  history  our  total  exports  are  more  than  double  our  total  im- 
ports. These  figures,  it  should  be  remembered,  relate  to  the  eleven 
months  ending  May  31,  1898. 


TRADE  BALANCES  COMPARED. 

The  following  table  shows  the  balance  of  trade  in  the  eleven 
months  just  ended,  and  compares  the  figures  wnth  tho.se  of  the  cor- 
responding eleven  months  in  each  year  since  1891  : 

BALANCE  OF  TRADE  IN  OUR   FAVOR  DURING  P:LEVP]N  MONTHS  OF  FISCAL 

yp:ar  1898,  compared  with  corresponding  period  in  preced- 
fng  years  : 


Eleven  months  cndin;,'  .Iiiiie  1  — 


InijM)rts. 


1898 S563,596,58I 

1897 679,547,391 

1896 723,560,984 

1895 1  670,807,921 

1894 i  603,210,910 

1893 i  796,70(i,878 

1892 755,385,894 


Exports. 


Sl,135,485,618 
977,800,522 
815,901,067 
752,570,335 
834,636,085 
782,218,625 
965,;«9,811 


Kxcess  of 
Kxports. 


»571,889,037 
298,253,131 
92,340,ia3 
82,262,114 
231,425,175 
*  14,487,753 
208,003,917 


*  Excess  of  Imports. 


One  feature  of  the  discussion  of  the  Dingley  law  which  at- 
tracted much  attention  was  the  protests  from  foreign  countries, 
w^hich  were  more  numerous  than  in  any  preceding  tariff  discussion 


8  PROSPERITY  SINCE  McKINLEY'S  ELErTTON. 

and  which  were  pointed  out  by  those  opposing  the  protective  tariff 
theory  as  an  evidence  that  the  adoption  of  the  new  law'  would 
result  in  the  loss  of  our  trade  with  those  countries.  As  the  countries 
making  those  protests  included  nearly  all  of  the  leading  commercial 
nations  of  the  world,  the  effect  of  the  adoption  of  the  protective  tariff 
in  the  face  of  these  protests  has  been  watched  with  much  interest. 

The  following  table  shows  our  exports  to  the  countries  in  ques- 
tion in  the  first  ten  months  of  the  preceding  year.  It  will  be  seen 
that  in  nearly  every  instance  our  sales  to  those  protesting  countries 
have  been  greater  since  the  adoption  of  the  Dingley  law  than  in  the 
corresponding  months  of  last  year  under  the  low-tariff  Wilson  law, 
the  total  sales  to  the  fourteen  countries  in  question  being  nearly 
$180,000,000  greater  in  the  first  ten  months  of  the  present  year  tiian 
in  the  corresponding  months  of  the  preceding  year : 


EXPORTS  FROM  THE  UNITKD  STATES  TO  COl'NTRIES  WHICH  OFFERED 
I'KOTESTS  A(iAlNST  THE  DINGLEY  1AKJKI\ 


United  Kingdom  and  Canada. 

Germany 

France 

Netherland.s 

Belgium 

Italy 

Japan 

Denmark 

China.. 

Argentina 

Austria-Hungarv 

Turkey 

Switzerland 

Greece 

Total ; 


Ten  months, 

Ten  months. 

April,  1897. 

April,  1898. 

$472,203,608 

«523,556,877 

107,587,265 

129,721,280 

51,376,430 

74,301,932 

42,444,677 

53,178,788 

27,900,403 

39,572,347 

18,476,062 

20,318,564 

11,233,594 

17.126.289 

8,761,664 

10,11 1,6.'!5 

8,997,685 

7,871,099 

5,435311 

5,417,851 

3,.32.'i,006 

4,821394 

324,678 

736,695 

52,i;«> 

228,927 

106,981 

122,659 

rr58,225,500 

8887,0843.37 

One  effect  of  the  new  tariff  law  which  will  be  of  especial  interest 
is  the  reduction  in  the  importations  of  wool  which  followed  the  en- 
actment of  the  new  law.     The  follomng  table  compares  the  impor- 


PROSPERITY  SINCE  McKINLEY'S  ELECTION.  0 

tations  of  wool,  by  montlis,  during  the  eleven  months  of  the  fiscal 
year  with  the  corresponding  months  of  last  year : 


IMPOKTJS  OF  WOOL  DURING  EACH  MONTH  OF  FISCAL  YEAR  1897   COMPARED  WITH   IS'JS. 


July 

August 

SepteiMber 

October 

November 

December 

January 

February  

March 

April 

May 

Total,  11  mocth 


Pounds. 

5,458,8o;j 
4,651,009 
4,795,170 
6,543.287 
10,202,004 
26,220,650 
20,784,829 
31,6.50,782 
5'<,229,939 
98,547,7.36 
45,857,220 


312,941,4.35 


1H98. 


Poll  II  lis. 

23,140,431 

2,877,877 

2,.5ft5,673 

7,154,542 

10,320  644 

17,8.57,218 

11,070,126 

16.083,340 

11,944,104 

13.148,376 

7,586.438 


125^,088.769 


FARMER'S  PRICES  INCREASED,  WHILE  ARTICLES  HE  BUYS 

HAVE  FALLEN. 


The  eiiect  of  the  improved  conditions  among  manufacturers 
and  of  our  foreign  market  has  been  felt  by  the  farmers  not  alone  in 
the  increase  in  the  price  of  wheat,  but  in  the  price  of  practically 
every  article  which  they  have  to  sell,  while  in  many  articles  which 
they  must  buy  prices  have  fallen. 

The  following  table  presents  the  price  of  articles  of  farm  pro- 
.'luction  and  farm  consumption  on  July  1,  189G,  and  June  1,  1898, 
as  shown  by  the  publications  of  Bradstreets,  an  accepted  authority, 
which  was  widely  quoted  by  Democratic  campaigners  in  1896. 
The  comparison  of  prices  of  farm  production  and  of  articles  of 
farm  consumption  is  followed  by  a  comparison  of  prices  of  silver 
on  the  two  dates  mentioned  : 


iO        PROSPERITY  SINCE  McKINLEY'S  ELECTION. 

PKICES  OF  ARTICLES  OF  FARM  PRODUCTION. 


Products. 


Wheat,  No.  *2,  red,  winter per  bushel. 

Corn,  No.  2,  mixed do 

Oats.  No.  2.  ujixed do 

IJarl^,  No.  2,  Milwaukee „ do 

Itye do 

Ileef,  carcasses  (Chicago) per  pound 

Hogs,  carca,-<ses  (Chicago) <lo 

Mutton,  carcas.ses  (Chicago) do 

Lard do 

Potatoes per  barrel 

Hides  (dry jter  pound 

Wool,  Ohio  X,  washed„ do 

Hops do 


July  1,  I  Junel, 
1896.    ;     1898. 


90.64^1    $1.18 
:X^/„        .S7H 
■21« 
.30 

.05^ 

■0*% 

.75 

.17 

.16 

.07 


.32K 

.*•!% 

.1>7J4 
.05 

.06  5i 
2.00 
.21 
.26 
.12 


PRICES  OF  ARTICLES  OF  FARM  CONSUMPTION, 


Products. 


July  1,  I  June  1, 
1896.         1898. 


Nails,  wire,  per  keg 82.80    |  $1.70 

Pine,  yellow,  per  M !  17.00     ,  16.50 

.Standard  sheetings,  per  yard i        -t^i  -WK 

Petroleum,  refinc<l,  pergallon :        .07%  .W% 

Coffee(Rio  No.  7,  per  pound ) I        .13  .06}4 

Phosphate,  per  2000  pounds |  5.25  5.00 

Bar  silver,  per  ounce.  .692  '  ..586 


Upon  thi.s  question  of  the  relation  of  the  price  of  silver  to 
the  price  of  farm  products  the  following  table  showing  the  prices 
of  wheat,  mess  pork,  wool  and  silver  at  various  dates  during  the 
last  two  years  is  interesting,  indicating,  as  it  does,  a  steady  fall  in 
silver  and  a  steady  rise  in  these  three  representative  articles  of 
general  farm  production  : 


PRICES  OF  SILVER  AND  FARM  PRODUCTS. 


Date. 


July  10,  1896 , 

Sep*embor26,  18% 
November  1,1 896.„ 

April  17, 1897 

September  16, 1897, 
De<*mber  17, 1897. 
February  25, 1898... 

March  10,  1898 

Junel,  1898 


Wheat. 
No.  2,  red. 


Mesa  pork, 
per  bbl. 


Cento. 
63.5 
74.5 
85.0 
96.5 
100.5 
102.2 
I0I.2 
106.5 
118.0 


$7.75 
a25 
8.50 
8.75 
9.50 
9.00 
10.75 
10.75 
11.50 


W  K)l, 
Ohio, 
per  lb. 


C«nt8. 
17.0 
18.0 
19.0 
21.5 
265 
27.5 
27.7 
28.0 
26.0 


Silver, 
per  oz. 


Cents. 
69.2 
66.0 
65.6 
62,5 
57.4 
56.6 
55.6 
54.3 
58.6 


PROSPERITY  SINCE  McKINLEY'S   ELECTION.        11 

One  feature  of  the  new  tariff  act  which  caused  especial  com- 
plaint among  those  opposed  to  the  protective  theory  was  the  asser- 
tion that  the  duty  which  was  placed  on  hides  would  increase  the 
price  of  shoes.  In  answer  to  this  it  is  only  necessary  to  say  that 
price  tables  recently  pubHshed  in  Dun's  Review  quoting  the  prices 
of  boots  and  shoes  from  January  1,  1897,  to  June  2,  1<S98,  siiow  that 
in  ah nost  every  class  the  prices  of  shoes  are  now  lower  than  they 
were  six  months  before  the  adoption  of  the  Dingley  law,  which 
l)laced  a  duty  on  imported  hides. 

That  the  improvement  in  our  commerce  and  manufacturing 
industries  following  the  new  tariff  law  has  resulted  advantageously 
to  business  is  shown  by  the  following  table  from  Dun's  Review, 
showing  amounts  of  the  liabilities  of  the  commercial  failures  during 
the  first  five  months  of  1898  as  compared  with  those  of  the  corre- 
sponding months  of  the  preceding  years  since  1893  : 


COMMERCIAL    FAILURES    FIRST    PIVF    MONTHS. 


Calendar  Year. 

Liabilities. 

Calendar  Year. 

Liabilities. 

1898... 

852,208,302 
76,»40,777 
82,209,180 

1895 

869,007,748 

1897 

1894 

87,344,680 

1896 

EXCESS  OF  GOLD    IHRORTS  OVER    EXPORTS   $103,026,989  IN 
ELEVEN  nONTHS. 


The  enormous  balance  of  trade  which  the  country  has  enjoyed 
during  the  last  eleven  months  has  resulted  in  the  largest  importa- 
tions of  gold  in  its  history.  The  total  importations  of  gold,  in- 
cluding ore  and  bullion,  amounted  during  the  eleven  months  just 
ended  to  $117,057,851,  and  deducting  the  exports  of  gold,  which 
are  $15,030,862,  leaves  an  excess  of  imports  of  $102,026,989  for  the 
eleven  months.  This  is  a  larger  sum  than  the  total  net  imports  in 
any  full  fiscal  year  in  the  history  of  the  country,  and  is  in  marked 


12        PRO.SPEHITY  SIN'CE  M(  KIN  LEY'S  ELECTION. 

contrast  with  the  conditions  during  the  preceding  Admistration,  in 
which  every  year  showed  a  net  exportation  ranging  ftom  §4,500,000 
to  §87,500,000,  as  is  indicated  by  the  following  table,  which  shows 
the  net  exports  and  imports  of  gold  (including  Ijullion  and  ore)  for 
the  fiscal  vears  since  1892  : 


THE    MOVEMENTS    OF    GOLD. 


I'iscal  year. 

E.xeess  of  exports 
of  gold. 

Kxc*;s>  of  import:! 
of  gold. 

1893 

887,506,463 

4, .027,942 

30,083,721 

78,884.882 

1894 

1895 ." 

1896 

18f)7 

»  44,6.53.200 
102,026,985 

1898  (11  months) 

The  effects  of  tliese  enormous  gold  importations  and  of  this 
general  business  improvement  are  felt  in  the  increased  amount  of 
money  in  circulation  in  the  L'nited  States,  as  shown  by  the  official 
statements  of  the  Treasury  Department.  This  statement  is  espe- 
cially interesting,  since  the  assertion  was  made  so  frequently  during 
the  campaign  of  1896  that  there  could  be  no  material  increase  in 
our  currency  without  the  free  and  unlimited  coinage  of  silver.  It 
will  be  observed  that  in  spite  of  the  fact  that  free  coinage  has  not 
been  adopted,  the  money  in  circulation  on  .June  1, 1898,  was  greater 
than  on  July  1,  1896,  by  §333,463,290. 


MONEY    IN    CIRCULATION    IN    THE    UNITED    STATES. 


Gold 

.Standard  silver  dollars 

.Subsidary  silver 

Gold  certificates 

Silver  certificates 

Treasury  notes 

Inited  States  notes 

Currency  certificates  .. 
National-bank  notes 

Total 


July  1,1896. 

June  1,1898, 

H54 ,905,064 

$649,571,881 

52,116,904 

.57.596,423 

60,204,4cl 

64,042,000 

42,198.119 

.35,883,209 

330,657,191 

391,225,265 

95.245,047 

100,226,855 

224,249.863 

290,202,987 

31.890,000 

26.540,000 

213,168,122 

224,609,636 

1,506,434,966 

1,839,898,256 

PROSPERITY  SINCE  McKIXLEY'S  ELECTION.        1,3 

Tliat  the  farmers  of  the  country  have  had  iheir  share  of  this 
general  prosperity  and  have  utilized  it  with  a  wisdom  which  char- 
acterized their  course  iu  the  campaign  of  1H9G,  as  well  as  on  other 
occasions,  is  shown  l)y  the  recently  publislied  statement  that  the 
farm  mortgages  in  Nebraska,  which  increased  |1, 635, 000  in  1896, 
were  reduced  by  $2,923,000  in  1807.  1"iie  figures  published  in  the 
early  months  of  the  present  year — and  their  accuracy  has  not  been 
called  into  question — show  that  the  faini  mortgages  filed  in  Ne- 
braska in  1896  were  |12,033,000  ;  releases,  |;il, 398,000  ;  increase 
in  indebtedness,  $1,635,000  ;  while  in  1897  there  were  filed  $11,- 
844,000 ;  released,  $14,767,000 — a  decrease  of  indebtedness  of 
$2,923,000. 

In  only  a  single  instance  have  the  farmers  failed  to  realize 
improved  prices,  and  that  instance  is  cotton.  That  this  continued 
low  price  of  cotton  is  due  to  causes  other  than  currency  is  indicated " 
by  the  following  table,  which  shows  the  cotton  production  of  the 
United  States  at  various  years  since  that  preceding  the  date  of  the 
crime,  so  called,  against  silver. 

i'i;<>i)r(  riox  ok  cotton  in  the  uxriED  states. 


Year.                         j 

Bales. 

Year.  ^                     ! 

Bales. 

1 
1S72 ! 

'2,975.000          j 
■l.tWi.lXK)          I 
(>.575.0OO 

189.5 

9.901  000 

lK7(i            

;  1897 1 

1\  1(X),000 

IKKli 

Not  only  is  the  improvement  in  prices  felt  in  general  articles 
of  farm  production,  but  also  in  farm  stock,  which,  according  to  the 
estimates  of  the  Department  of  Agriculture,  has  increased  about 
$240,000,000  in  value  during  the  year  1897,  the  increase  being  dis- 
tributed as  follows  : 

INCREASE  IN   FARM  STOCK. 

Mules $6,000,000 

Hogs ■ 8,000,000 

Farm  horses     . 25,000,000 

Milch  cows 65,000,000 

Other  cattle 104,000,000 


14         PU()SPER[TY  SINCE  McKIXLEY'S  ELECTION. 
ADniNI5TRATI0N'S  POLICY  WITH  REGARD  TO  CUBA. 

That  the  Administration  has  fully  carried  out  the  pledges,  ex- 
pressed or  implied,  of  the  platform  in  regard  to  Cuba  can  not  be 
doubted  by  anybody.  The  platform  said  :  "  The  Government  of 
Spain  having  lost  control  of  Cuba,  and  being  unable  to  protect  the 
property  or  lives  of  resident  American  citizens,  or  to  comply  with 
its  treaty  obligations,  we  believe  that  the  Govermnent  of  the  United 
States  should  actively  use  its  influence  and  good  offices  to  restore 
peace  and  give  independence  to  the  island." 

The  first  step  taken  by  President  McKinley  upon  assuming',  the 
duties  of  his  office  was  for  the  protection  and  release  of  American 
citizens  in  Cuba  held  in  Spanish  prisons.  A  statement  sent  to  the 
Senate  by  President  Cleveland  on  January  25,  1897.  showed  that 
seventy-four  American  citizens  had  been  arrested  in  Cuba  since  the 
beginning  of  the  insurrection.  Seven  of  these  had  been  tried  and 
appeals  taken  in  two  cases;  seven  others,  correspondents  of  Ameri- 
can newspapers,  had  been  banished  from  the  island.  The  case  ol' 
Dr.  Ruiz,  who  had  died  in  prison  and  whose  death  was  believed  to 
be  due  to  inhuman  treatment  b\'  his  jailers,  was  made  the  subject 
of  a  special  inquiry  by  President  McKinle}'  during  the  first  two 
weeks  of  his  Administration,  and  in  the  other  cases  such  vigorous 
steps  were  taken  to  obtain  their  release  before  many  weeks  of  the 
new  Administration  had  passed,  jthat  every  American  citizen  so 
confined  was  released. 


PROTEST  AGAINST  WEYLERS  POLICY  OF  CRUEL  PERSECU- 
TION OF  CUBANS. 

Another  prompt  step  taken  by  the  President  was  to  bring  al)0ut 
the  cessation  of  cruelties  infiicted  upon  prisoners  taken  by  Spanish 
officials  in  the  war  in  Cuba.  The  President  served  notice  upon  the 
Spanish  Government  shortly  after  his  inauguration  that  the  United 
States  Government  recognized*  conditions  in  Cuba  which  demanded 


I'ROSFERITY  ISINCE  McKlNLEY'S  ELECTIOX.         15 

a  different  treatment  from  that  being  followed  by  General  Weyler, 
and  this  demand  on  his  part  was  complied  with.  On  May  17tli  he 
sent  to  Congress  a  message  calling  attention  to  the  fact  that  Amer- 
ican citizens  in  Cuba  were  suffering  as  the  result  of  the  war,  and 
ref'ommending  an  apj)ro})riation  for  their  relief,  which  was  promptly 
adopted  by  Congress,  and  money  and  provisions  were  sent. 

Another  result  of  the  protests  of  the  Administration  against 
the  methods  pursued  in  Cuba  was  seen  in  the  decree  of  April  20th, 
proposing  certain  reforms  in  the  government  of  Cuba.  The  pro- 
tests of  the  United  States  against  the  cruelties  practiced  by  General 
Weyler  were  followed  by  his  recall  October  8th,  and  on  November 
27th  by  a  decree  tendering  what  professed  to  be  a  system  of  auton- 
omy, but  which  soon  proved  unsatisfactory  and  delusive. 

Meantime  the  cruelties,  especially  with  reference  to  the  treat- 
ment of  the  reconcentrados,  continued  so  great  under  General 
Blanco,  who  had  succeeded  General  Weyler,  that  President  McKin- 
ley  finding  all  peaceful  metliods  and  efforts  to  bring  about  the  ces- 
sation of  these  cruelties  and  independence  of  the  Cubans  unsuc- 
cessful, found  himself  justified  in  utilizin<^  the  last  resort  upon 
wliich  the  nation  has  now  entered  and  the  success  of  which  is 
ali'eady  assured. 


(No.  8.) 


Silver  an''  Wheat 


Bryan's  Argument  in  the  Light  of  Experience 


«^ 


FROM  THE  SPEECH  OP 

Hon.  JESSE  OVERSTREET, 

OF  INDIANA 

IN  THE  HOUSE  OF  REPRESENTATIVES 


Friday,  April  29th,  1898. 


SILVER  AND  WHEAT. 


I  now  propose,  Mr.  Speaker,  to  refer  briefly  to  some  of  the  arguments 
advanced  in  favor  of  tlie  free  coinage  of  silver,  and  to  point  out  ttie  inter- 
ests that  are  at  worlc  trying  to  undo  the  veork  of  prosperity  in  order  to  create 
a  market  for  silver.  I  shall  show  from  unassailable  sources  that  an  ounce 
of  silver,  for  which  we  are  asked  to  pay  $1.29,  in  order  to  enjoy  the  inesti- 
mable blessings  of  free  coinage,  can  be  produced  for  less  than  25  cents. 

COST  OF  THE  PRODUCTION  OF  AN  OUNCE  OF  SILVER- 
IMMENSE  PROFIT  OF  THE  SILVER  BARONS, 

It  is  generally  admitted  by  those  who  are  not  wedded  to  the  theory  that 
all  national  blessings  flow  from  the  free  and  unlimited  coinage  of  silver  that 
the  price  of  silver  bullion  has  been  largely  reduced  because  the  supply  has 
outgrown  the  capacity  of  consumption  or  demand.  For  the  four-year  period 
1871-1875  the  annual  average  of  the  world's  product  of  the  white  metal  was 
but  63,317,014  ounces,  while  for  the  year  1896  it  was  165,100,887  ounces,  and 
for  1895  it  was  still  larger. 

This  Increased  production  was  due  to  large  discoveries  of  silver  ore  and 
to  the  constantly  increasing  cheapness  of  the  method  of  production,  refining, 
transportation,  etc.  It  is  shown  that  silver  can  be  produced  profitably  at 
prevailing  market  prices,  because  the  production  continues.  It  must  follow, 
then,  that  If  we  restore  silver  to  $1.29  an  ounce  it  would  mean  the  payment 
of  a  bonus  to  the  silver  barons  of  the  difference  between  the  actual  cost  of 
production  and  the  price  to  which  they  wish  silver  restored.  It  is  interesting 
to  review  some  of  the  official  reports  made  on  the  cost  of  the  production 
of  silver  as  long  as  ten  years  ago,  when  an  ounce  of  silver  was  worth  93.97 
cents  as  contrasted  with  44  cents  at  the  present  time. 

Professor  Austen,  of  the  royal  mint  in  London,  carefully  investigated  the 
cost  of  production  of  fine  silver  in  this  country,  and  he  testified  to  that 
effect  before  the  royal  monetary  commission  December  9,  1886. 

The  testimony  of  Professor  Austen  is  in  the  first  report  of  the  royal  com- 
mission, pages  62  to  67,  and  appendix  in  same  volume,  page  325.  From  his 
testimony  it  appears  that  the  cost  of  production  of  silver  was  as  follows 
ten  years  ago: 


4  SILVER  AND  WHEAT. 

COST  OF  PRODUCTION  PER  OUNCE  FINE. 

Cents 

Arizona    83.2 

California  51 

Colorado    60.2 

Montana    43.3 

Utah  47.7 

'   Average  cost  of  production  in  the  United  States,  51.1  cents  per  ounce  fine. 

The  cost  of  production  of  silver  in  Mexico,  according  to  the  report  of  Mr. 
Stewart  Pixley,  of  the  firm  of  Pixley  &  Abell,  in  London,  in  the  same  docu- 
ment, page  325,  averages  for  au  ounce  of  pure  silver  Is.  6d.  per 
ounce  fine,  or  37  cents. 

According  to  Professor  Austen's  returns  (same  report,  volume  1,  page  329), 
the  cost  of  production  of  an  ounce  fine  silver  in  Mexico  averaged  about  44% 
cents,  or  Is.  8d.  per  ounce  of  0.925  fine,  English  standard. 

In  south  and  Central  America  Professor  Austen  gives  the  cost  of  produc- 
tion of  an  ounce  of  fine  silver  at  Is.  5d.,  or  34%  cents  per  ounce  fine.  (Same 
report,  page  328.) 

In  Germany,  the  product  of  the  Mansfeld  copper  mines,  according  to  Pro- 
fessor Austen  (see  same  report,  page  328)  in  1883,  the  amount  of  silver  pro- 
duced annually  in  the  treatment  of  copper  ores  is  given  as  7,200,000  ounces. 
Of  Ibis  quantity  6,500,000  ounces  were  obtained  during  tbe 
ordinary  smelting  of  copper  ores,  at  a  cost  of  9  l-3d.  per 
ounce,  £nglisb  standard  of  0.925  fine,  or  31  5-8  cents  per 
ounce  fine  silver.  It  also  states  in  tbe  same  article  that  by 
tbe  improved  process  of  Clandet  338,000  ounces  were 
recovered  in  Great  Britain  from  copper  ores,  at  5d.  per 
ounce  standard  (0.925  fine),  or  at  10  7-8  cents  per  ounce 
fine  silver. 

In  Australia  the  cost  of  production  of  pure  silver  is  given  by  Professor 
Austen  (same  report,  volume  1,  page  328)  as  follows: 

The  report  for  the  year  1886  of  the  Broken  Hill  mine.  Barrier  Ranges, 
New  South  Wales,  a  mine  of  considerable  importance,  has  been  published. 
It  states  that  during  the  year  1886  the  smelting  of  10,397  tons  of  ore  yielded 
1881  tons  of  lead  and  871,665  ounces  of  fine  silver,  at  a  cost,  including  mining 
charges,  of  £4  12s.  y^d.  per  ton  of  ore,  or  at  the  rate  of  Is.  Id.  per  ounce  of 
silver  produced  (equal  to  28%  cents  per  ounce  fine  silver)  if  the  lead  be  con- 
sidered of  no  value,  but  the  lead  sold  at  £12  per  ton  ($58.32  per  ton). 

Later  reports  give  the  production  of  the  Broken  Hill  mine  for  1889  at  over 
10,000,000  ounces  of  pure  silver  and  the  cost  of  production  not  quite  8  pence 
per  ounce,  or  about  16  cents  per  ounce  fine. 

For  the  nine  months  of  1890  the  production  of  the  Broken  Hill  mine  was 
17,000,000  ounces  of  pure  silver,  which  according  to  the  bullion   cost,  at 


SlLV&iR  AND  WHEATS.  5 

16  cents,  would  be  about  $3,000,000,  while  at  the  price  we  paid  for  it  it  would 
be  over  $20,000,000. 

In  Director  Kimball's  report  of  1887,  page  112,  on  the  cost  of  production 
of  silver,  appears  the  following  statement,  showing  that  the  Granite  Moun- 
tain mine,  at  Granite,  Mont.,  produced  in  1886— 

Nineteen  thousand  three  hundred  and  sixteen  tons  of  silver  ore;  that  the 
average  amount  of  silver  in  each  ton  was  150  ounces  of  pure  silver,  and  that 
the  total  amount  extracted  was  2,897,754  ounces  of  fine  silver;  that  the  cost  of 
mining  was  $6.06  per  ton,  and  that  the  reduction  of  each  ton  cost  $13,  or  a 
total  of  $19.06  per  ton  as  the  cost  of  production. 

This  statement  was  oflacially  furnished  by  the  Granite  Mountain  Mining 
Company  to  the  Director  of  the  Mint  in  1887,  and  is,  no  doubt,  correct;  and 
here  it  is  worked  out  by  the  Director  of  the  Mint: 

19,316  tons  of  silver,  cost  of  mining,  at  $6.06  per  ton $117,054.96 

19,316  tons,  cost  of  reduction,  at  $13  per  ton 251,108.00 

Total    $368,162.96 

The  product  of  these  10,316  tons  of  silTer  ore  amonnted  to 
3,987,754  ounces  of  fine  silver,  at  a  cost  of  production  of 
9368,163.06,  equal  to  13  3-4  cents  per  ounce. 

Thus  in  this  single  case,  ivhere  the  cost  of  production  was 
a  little  over  $368,000,  the  price  that  ivould  have  been  paid 
for  it  under  free  coinage  at  the  preTailing  market  price  ten 
years  ago  would  be  over  $3,500,000. 

In  the  report  of  this  company  itself  to  the  Director  of  the  Mint  for  1887 
they  give  the  sale  of  their  silver  bullion  at  96  cents  per  ounce.  That  was 
the  market  price  per  ounce.  Upon  their  own  showing  the  percent- 
age of  labor  to  profit  was,  for  labor,  13.38  per  cent.;  profit, 
86.73  per  cent. 

SILVER  AND  WHEAT— BRYAN'S  ARGUMENTS  IN  THE  LIGHT  OF 

EXPERIENCE. 

William  J.  Bryan  and  other  advocates  of  free  coinage  at  the  ratio  of  16 
to  1  have  based  their  strongest  plea  upon  the  assertion  that  "  wheat  and 
silver "  are  "  linked  together "  by  some  mysterious  sympathy  that  causes 
the  price  of  wheat  to  decline  in  accordance  witli  the  depression  of  the  price 
of  silver.  Mr.  Bryan  preached  this  theory  to  the  farmers  throughout  the 
national  campaign  of  1896,  when  wheat  was  unusually  low,  owing  to  the 
lessened  demand  for  wheat  abroad  and  the  lessened  demand  at  home  because 
of  hard  times,  the  result  of  four  years  of  Democratic  misrule.  He  preached 
this  theory  in  season  and  out  of  season,  on  the  stump  and  in  Congress.  In 
the  course  of  his  remarks  in  the  House,  Wednesday,  August  16,  1893,  on  the 
bill  to  repeal  the  purchasing  clause  of  the  Sherman  Act,  he  said: 


6 


SILVER  AND  WHEAT. 


But,  as  I  said,  the  producers  of  wheat  and  cotton  have  a  special  grievance, 
for  the  prices  of  those  articles  are  governed  largely  by  the  prices  in  Liverpool, 
and  as  silver  goes  down  our  prices  fall.     *     *     *     If  it  is  possible  to  do  so, 
it  is  no  more  than  fair  that  we  restore  silver  to  its  former  place,  and  thus- 
give  back  to  the  farmer  some  of  his  lost  prosperity. 

The  Democratic  campaign  book  of  1896,  prepared  by  Hon.  Benton  McMil- 
LiN,  of  Tennessee,  and  circulated  by  the  Democratic  National  Committee,, 
elaborated  and  illustrated  this  theory  by  extensive  quotations  and  statistics. 
Thus,  on  page  84,  "  Decline  in  farm  prices:" 

"  There  is  no  better  illustration  of  the  ruinous  consequences  flowing  from 
the  adoption  by  the  United  States  of  the  single  gold  standard  than  a  com- 
parison of  the  prices  of  agricultural  products  at  the  date  of  the  demonetiza- 
tion of  silver  with  the  price  now  (1896).  *  *  *  It  will  be  observed  that 
since  the  demonetization  in  1873  there  has  been  a  decline  in  every  line  of 
farm  products.  *  *  *  The  demonetization  of  silver  was  a  bold  stroke  in 
the  interest  of  capital  that  has  reduced  the  value  of  every  product  in  the 
world.  This  is  conclusively  proven  by  the  fact  that  just  as  silver  has  depre- 
ciated, in  like  proportion  have  all  other  values  fallen  in  the  scale." 

This  be^iling  argument,  which  made  the  judgment  of  so  many  farmers 
tremble  in  the  scale,  has  time  and  again  been  proved  to  be  the  purest  fallacy 
and  the  most  supreme  species  of  political  hypocrisy  on  the  part  of  Messrs. 
Bryan,  Towne,  Jones,  and  other  free-coinage  leaders;  but  the  vicious  error 
was  brought  home  to  every  producer  of  wheat  in  the  United  States  when, 
soon  after  Major  McKinlej^'s  election,  wheat  and  silver  suddenly  parted 
company,  and  while  the  former  went  skyward  the  great  white  metal  took 
a  tumble  in  the  markets  that  knocked  all  the  dignity  out  of  it  ajs  an  inflexible 
standard  of  value. 

On  September  1,  1896,  1  bushel  of  wheat  and  1  ounce  of  silver  were  of 
equal  value.  On  September  1,  1897,  1  bushel  of  wheat  equaled  2X)unces  of 
silver  in  value.  The  following  table  shows  the  fallacy  of  the  free-silver 
argument  at  a  glance: 


Date, 

Wheat,  per 
bushel 

Date, 

Silver,  per 
ounce. 

Sept.    1,  1896 

Sept.  17,  1896 

Cents. 
67.2 
70.6 
76.1 
78.8 
80.1 
82.2 
83.7 
87.1 
92.7 
93.8 
94.2 
96.7 
98.1 
99 
100.7 
103.5 
103.2 

Sept.   1,  1896 

Sept.  26,  1896 

Oct    24    1896 

Cents. 
67.2 
66.8 

Sept.  24,   1896 

Oct.  8,  1896 

65  6 

Mar.  6,  1897 

64.8 

Oct.  15,  1896      

Mar.   13,  1897 

63.4 

Oct.  24,  1896 

April  10,    1897 

62.4 

Oct.  29,  1896 

May  1,    1897 

61,8 

Nov.  5,  1896 

June  26,   1897 

60,4 

Mar.  11,  1897 

July  24,   1897 

59,7 

Mar.  18,  1897 

July  31,    1897 

58,4 

Apr.  15,  1897                 

Aug    4,   1897 

57.1 

Apr.  29,  1897 

Aug.  6,  1897 , 

56.4 

May  6,  1897 

Aug.  20,  1897 

Aug    11     1897 

55.5 

Aug.   16    1897 

54.3 

Aug.  25,  1897 

Aug    17    1897 

53.1 

Aug.  27    1897      

Aug    23    1897 

52,1 

Sept.   1,  1897 

Sept    1     1897 

51,3 

SILVER  AND  WHEAT.  7 

SILVER  DOLLARS  COINED  BEFORE  AND  SINCE  "THE  CRIME 
OF  73"— THE  RECORD  OF  1897. 

The  total  coinage  of  standard  silver  dollars  during  the  year  1897  amounted 
to  3521,203,701. 

This  is  significant  considered  side  by  side  with  Table  XLIII,  contained  in 
the  report  of  the  Director  of  the  Miut,  giving  the  total  coinage  of  silver 
dollars  from  1792  to  1873,  the  year  in  which  it  is  alleged  "  silver  was  struck 
down."     This  table  shows  tli^  coinage  of  silver  dollars  to  have  been: 

From  1792  to  1853 $2,506,890 

From  1853  to  February  12,  1873. 5,524,348 

Total  coinage  in  eighty-one  years $8,031,238 

It  will  be  seen  that  the  coinage  of  silver  dollars  during  the  single  year  of 
1897  exceeded  the  total  coinage  for  the  eighty-one  years  from  1792  to  1873 
by  $13,172,463,  or  164  per  cent: 

Coinage  of  1897 $21,203,701 

Coinage  from  1792  to  1873 8,031,238 

Excess    $13,172,463 

The  coinage  of  silver  dollars  since  "  the  crime  of  '73  "  foots  up  the  enor- 
mous total  of  $487,959,666  down  to  June  30,  1897.  This  is  what  Republican 
legislation  has  done  to  "  discredit "  the  "  money  of  the  people."  Not  a  dollar 
was  coined  from  1806  to  1835,  inclusive,  operations  in  that  direction  having 
been  suspended  by  order  of  President  Jefferson.  The  total  coinage  of  silver 
dollars  from  1793  to  the  beginning  of  the  war,  when  the  Democratic  party 
had  been  in  power  continuously  for  many  years,  is  shown  in  the  following 
table: 


Year. 

Value. 

Year. 

Value. 

1793-1795  

$204,791 

72,920 

7,776 

827,536 

423,515 

230,920 

54,454 

41,650 

66,064 

19,517 

321 

1,000 

800 

61,005 

173,000 

184,618 

165, 100 

20,000 

1845 

$  24,. 500 

169,600 

140,7.50 

15  000 

1796 

1846 

1797 

1847 

1798 

1848 

1799 

1^49 

62,600 
47,500 

1800. 

1850 

1801 

1851 * 

1  300 

1802 

1852 . 

1,100 

1803 

1858 

46,110 

1804   

18.54 

33.140 

1805 

1855 

26^000 

1836 

1856 

63,500 

1889 

1857 

94,000 

1840 

1858 

1841... 

1859 

636,500 
733,9:^0 

1842 

1860 

1843 

Total 

1844 

4,140,070 

Instead  of  having  struck  down  silver,  it  will  be  seen  from  the  foregoing 
comparison  of  official  figures  that  the  Republican  party  is  the  real  filend  of 
the  "  dollar  of  our  daddies." 


8  SILVER  AND  WHEAT. 

DEMOCRATIC  POSITION  ON  SILVER  IN  1876. 

That  the  clamor  for  the  white  metal  is  of  comparatively  recent  origin,  and 
that  "the  crime  of  '73"  itself  did  not  for  some  years  after  provolce  the 
great  indignation  which  the  would-be  saviors  of  the  country  of  the  present 
day  pathetically  affect,  is  proved  by  the  speeches  of  Senators  Stewart  and 
Jones,  who  were  still  busy  in  1874  praising  the  unfailing  blessings  of  the 
gold  standard. 

But  late  as  1876  the  Democratic  leaders  of  the  House  were  still  sanction- 
ing the  "  crime  of  '73  "  by  proposing  legislation  prohibiting  the  Secretary  of 
the  Treasury  from  purchasing  silver  bullion  for  coinage,  restricting  silver 
coinage  to  subsidiary  coinage,  fixing  the  price  of  silver  by  the  market  rate, 
providing  for  the  transfer  of  the  seigniorage  to  the  Treasury,  and  finally 
limiting  the  legal  tender  of  the  standard  silver  dollar  to  amounts  not  exceed- 
ing $50.    Witness  the  following: 

[Forty-fourth  Congress.    Act  to  redeem  fractional  currency.    Proceedings  in 

House.] 

A  bill  (H.  R.  2450)  to  provide  for  a  deficiency  in  the  Printing  and  Engraving 
Bureau  in  the  Treasury  Department,  and  for  the  issue  of  silver  coin  of  the 
United  States  in  place  of  fractional  currency.  Reported  from  the  CJom- 
mittee  on  Appropriations. 

March  27,  1876,  Mr.  Holman  submitted  the  following  as  a  new  section: 

"  Sec.  3.  The  Secretary  of  the  Treasury  is  hereby  prohibited  from  maliing 
any  further  increase  in  the  interest-bearing  debt  of  the  United  States  by  the 
issue  and  sale  of  bonds  for  the  purchase  of  silver  bullion  for  coinage.  But 
silver  bullion  shall,  under  regulations  to  be  prescribed  by  the  Secretary 
of  the  Treasury,  be  received  by  the  several  mints  for  fabrication  into  sub- 
sidiary coins,  and  paid  for  in  such  coins  at  a  rate  or  price  per  ounce  to  be 
fixed  from  time  to  time,  according  to  the  marljet  rate,  by  the  Director  of  the 
Mint  with  the  approval  of  the  Secretary  of  the  Treasury,  on  the  basis  of  the 
difference  between  the  par  value  of  such  coin  and  the  value  of  such  bullion, 
and  an  addition  not  exceeding  1  per  cent,  in  the  discretion  of  the  Secretary 
of  the  Treasury,  shall  be  made  to  the  purchasing  price  as  an  allowance  for 
the  transportation  of  coin.  And  the  excess  of  the  par  value  of  such  coin 
over  the  value  of  the  bullion  so  dejJosited,  less  the  amount  that  shall  be 
allowed  for  transportation,*  as  aforesaid,  determined  as  above  provided,  shall 
be  from  time  to  time  covered  into  the  Treasury,  as  the  Secretary  of  the 
Treasury  shall  direct:  Provided,  hrjtcever,  That  such  silver  coins  of  the  denomi- 
nations aforesaid,  and  ,the  silver  bullion  now  owned  by  the  United  States^ 
shall  not  exceed  in  par  value  the  par  value  of  the  fractional  currency  now 
authorized  by  law." 

Mr.  E.  Wells  (Democrat)  moved  the  following  proviso  to  the  proposed  new 
section: 

"  Provided,  That  if  silver  bullion  is  not  provided  for  coinage  in  sufficient 
quanti<|f  for  the  redemption  of  fractional  currency,  the  Secretary  of  the 
Treasury  may,  under  the  provisions  of  the  act  entitled  '  An  act  to  provide  for 
the  resumption  of  specie  payments,'  approved  January  14,  1875,  purchase 
silver  bullion  for  the  purpose  of  coinage  as  provided  in  said  act." 


SILVER  AND  WHEAT.  9 

Which  was  agreed  to— yeas  118,  nays  106. 

Yeas— Democrats,  45;  Republicans,  72;  Independent,!. 

Nays— Democrats,  88;  Republicans,  16;  Independent,  2. 

Mr.  Reagan  (Democrat),  of  Texas,  offered  the  following  amendment: 

Insert  as  section  4  the  following: 

"  That  the  silver  coins  of  the  United  States  of  the  denomination  of  $1  shall 
be  a  legal  tender  at  their  nominal  value  for  any  amount  not  exceeding  $50 
in  any  one  payment;  and  silver  coins  of  the  United  States  of  denominations 
of  less  than  $1  shall  be  a  legal  tender  at  their  nominal  value  for  any  amount 
not  exceeding  $25  in  any  one  paymeut." 

Which  was  agreed  to— yeas  122,  nays  94. 

Yeas— Democrats,  99;  Republicans,  22;  Independent,  1. 

Nays— Democrats,  28;  Republicans,  65;  Independent,  1. 

March  31,  1876,  the  amendment  offered  by  Mr,  Holman,  as  amended  on 
motion  of  Mr.  Wells,  was  disagreed  to— yeas  68,  nays  77. 

The  bill  as  amended  by  the  amendment  of  Mr.  Reagan  was  then  passed— 
yeas  122,  nays  100. 

Yeas— Democrats,  50;  Republicans,  70;  Independent,  2. 

Nays— Democrats,  80;  Republicans,  18;  Independent,  2. 

(For  foregoing  proceedings  see  Congbessional  Recobd,  volumes  14  and 
15.) 


SENATOR  MILLS,  OF  TEXAS,  ON  FREE  COINAGE  AT  16  TO  1. 

Senator  Mills,  of  Texas,  United  States  Senator  and  ex-chairman  of  the 
House  Committee  on  Ways  and  Means,  on  March  6,  1898,  in  his  letter  with- 
drawing from  the  Senatorial  race,  declared  that  free  silver  coinage  at  the 
ratio  of  16  to  1  by  the  United  States  alone  is  impossible.    He  said: 

"  Now  that  the  great  body  of  the  commercial  world  has  taken  its  stand 
against  silver,  I  do  not  believe  it  in  the  pdwef  of  the  United  States  alone,  by 
its  independent  action,  to  restore  the  value  of  silver  to  par  with  gold  at  16 
to  1.  I  believe  that  the  United  States  can  restore  the  demand  which  they 
withdrew,  but  do  not  believe  that  they  can  restore  the  demand  which  was 
withdrawn  by  other  countries  when  they  closed  their  mints  against  silver." 


THE  STANDARD  DOLLAR  FALLS  TO  39.66  CENTS. 

In  August,  1897,  the  silver  contained  in  the  standard  dollar,  which  the 
Government  is  now  keeping  at  par  with  gold,  fell  to  a  fraction  below  40  cents, 
as  shown  by  the  folio  wing  Associated  Press  telegram: 


10  SILVER  AND  WHEAT. 

New  York,  August,  24,  1897. 

Silver  broke  all  record  again  to-day,  falling  to  23%  pence  in  London,  which 
is  one-eighth  penny  below  the  previous  low  point,  and  to  SlVa  cents  in  New 
York,  which  is  one-fourth  cent  below  the  previous  low  record.  Mexican  dol- 
lars sold  at  391/2  cents. 

At  to-day's  New  York  price  for  bars,  the  value  of  the  silver  in  the  standard 
silver  dollar  is  39.66  cents. 

SEIGNIORAGE  ON  THE  SILVER  COINAGE  FISCAL  YEAR  1897. 

A  statement  prepared  at  the  Mint  Bureau  shows  that  the  number  of  silver 
dollars  coined  at  the  United  States  mints  during  the  fiscal  year  ended  June 
30,  1897,  was  $21,203,701,  on  which  the  seigniorage  or  profit  to  the  Govern- 
ment amounted  to  $6,336,104.25,  This  profit  was  turned  into  the  Treasury 
from  time  to  time  as  the  coinage  progressed,  and  was  used  to  reduce  taxation 
instead  of  wandering  into  the  pockets  of  the  silver  producers,  as  would  have 
lieen  the  case  under  free  coinage. 


WAGES  AND  PENSIONS— HOW  FREE  COINAGE  WOULD  AFFECT 

THEM. 

The  Journal  of  the  Knights  of  Labor,  published  at  Washington  on  October 
15,  1896,  during  the  national  campaign,  told  workingmen  In  a  half-page 
article,  entitled  "  A  recapitulation— Have  the  opponents  of  Mr.  Bryan  made 
out  a  good  case?  "  that  the  value  of  all  workingmen's  deposits  in  savings 
banks,  the  pensions  of  old  soldiers,  and  "  money  in  all  forms  "would  be  cut 
in  two  by  free  coinage. 

The  paper  'said  on  this  head: 

"  Third.  That  the  purchasing  power  of  pensions  and  savings-bank  deposits 
would  be  cut  in  two  by  free  coinage.  This  is  the  only  true  contention  made 
by  the  gold  men,  and  it  is  fully  agreed  to  by  all  candid  advocates  of  an 
increased  volume  of  money.  Fixed  incomes,  bond  mortgages,  and  money 
in  all  its  forms,  whether  in  savings  banks  or  national  banks,  would  have 
much  les.s  purchasing  power." 

The  article  was  from  the  pen  of  Mr.  H.  B.  Martin,  the  editor  of  the  paper 
and  a  member  of  the  general  executive  board  of  the  order. 


PER  CAPITA  WEALTH. 

Is  the  amount  of  money  In  a  country  an  Index  of  its  prosperity,  as  free- 
coinage  men  insist?  The  per  capita  metallic  wealth  of  the  United  States, 
according  to  the  report  of  the  Director  of  the  Mint,  was  $23.70.    According  to 


SILVER  AND  WHEAT.  11 

this  theory  the  people  of  Aden  and  Perim,  Ceylon,  Hongkong,  Labuau,  and 
Straits  Settlements  ought  to  be  the  most  prosperous  in  the  world,  for  theirs 
is  nearly  three  times  that  of  the  people  of  the  United  States,  their  per  capita 
share  of  the  world's  money  stock  being  $63,680. 

Any  American  ought  to  be  glad  to  exchange  places  with  the  natives  of 
Hawaii,  whose  per  capita  wealth  is  $60,  chiefly  gold;  or  the  Siamese,  whose 
per  capita  is  $42.68;  or  the  people  of  the  South  African  Republic,  with  $38 
per  capita.  Great  Britain's  per  capita  is  but  $20.65;  Germany's  but  $18.95, 
yet  the  export  commerce  of  these  nations  is  enormous.  Reducing  their  per 
capita  share  in  the  money  stock  of  the  world  to  a  table,  giving  their  export 
commerce  in  juxtaposition,  will  show  how  little  relation  one  bears  to  the 
other: 


Country.  Per  capita.        Exports,  1896.* 


Great  Britain $20.65  $3,870,500,000 

Germany 18.95  2,026,500,000 

France 34.68  1,389,600,000 

*  Figures  of  Mr.  Jules  Roche,  formerly  French  minister  of  finance  and  commerce. 

Great  Britain,  with  a  per  capita  metallic  money  wealth  14.03  less  than 
Prance,  has  a  world  commerce  nearly  three  times  as  great  as  that  of  France, 
while  Germany,  with  a  per  capita  metaillic  stock  15.63  less  than  France,  con- 
ducts nearly  twice  as  much  foreign  business  as  France. 


CONSUL-GENERAL  CRITTENDEN  ON  CONDITIONS  IN  MEXICO. 

Ex-Gcvernor  Thomas  T.  Crittenden,  of  Missouri,  was  consul-general  to 
Mexico  under  the  last  Cleveland  Administration.  Mr.  Crittenden  is  an  ardent 
free-silver  man  and  vigorously  advocated  the  election  of  Mr.  Bryan  in  1896. 
Yet  this  is  what  Mr.  Crittenden  sets  forth  in  an  official  report  to  the  State 
Department,  dated  September  1,  1896,  touching  the  financial  question  as 
bearing  upon  the  industrial  conditions  of  Mexico.  Speaking  of  these  condi- 
tions in  1873  as  compared  with  1896,  he  says: 

"  Then  again  (1873),  gold  and  silver  were  on  a  par  and  Mexican  money  was 
almost  the  equal  of  the  money  of  all  other  nations,  while  to-day.  as  com- 
pared with  a  gold  dollar.  It  is  worth  but  52  cents.  *  *  *  Finally,  it  can 
be  generally  proven  that  the  cost  of  living  and  of  wearing  apparel  of  the 
native  was  as  low,  and  in  many  instances  lower,  in  1873  than  at  the  pres- 
ent time." 

Mr.  Crittenden  then  submits  the  following  report  on  wages  and  salaries 
paid  in  and  about  the  City  of  Mexico  at  the  present  date: 


12 


SILVER  AND  WHEA'T. 


WAGES. 


Employment. 


Agents,  railway per  month. 

Boiler-makers    per  day . 

Brakemen per  month . 

Bricklayers  (natives)   per  day. 

Clerks  (oflSce) per  month. 

Cooks,  women do 

Cooks,  men do 

Carpenters. per  day. 

Conductors,  passenger per  month . 

Conductors,  freight    do 

Conductors,  street-car    per  day. 

Coachmen,  private  (native) per  mohth. 

Coachmen,  public  (native)    do 

Division  (railway)  superintendents,       do 

Drivers,  street-car    per  day . 

Engineers: 

Locomotive per  month . 

Stationary,  with  board •  per  day. 

Stationary,  without  board do 

Engravers do    .  . 

Firemen,  locomotive per  month. 

Firemen,  ordinary do     •    . 

Furnace  men per  day. 

Harness-makers,  etc do 

Ironworkers do 

Jewelers do 

Laborers,  in  large  cities do 

Laborers,  in  the  country    do 

Laborers  in  factories  (10  to  11  hours)     do 
Laborers,  skilled  (10  to  11  hours)  i:>,      do 

Mechanics do 

Machinists  (shop) do 

Miners,  skilled do 

Miners,  ordinary do 

Maids,  house    per  month. . 

Operators,  telegraph do 

Plumbers: 

Native per  day. . 

American    do 

Printers: 

Native per  'week . . 

Pressmen do 

Compositors   do 

Policemen per  month  \ '. 

Switchmen per  day . . 

Blacksmiths do 

Gold  and  silversmiths do 

Stone  masons    do 

Seamstresses do 

Trainmasters   per  month! . 

Tailors: 

Repairers    per  day. . 

Coat  makers per  coat. . 

Vest  makers per  vest.. 

Pantaloonists  per  pair. 


Mexican 
currency. 


175.00  to 

4.00  to 

35.00  to. 

1.00  to 

40.00  to 

6.00  to 

25.00  to 

1.50  to 

100.00  to 

100.00  to 

.50  to 

15.00  to 

250.00  to 
.50  to 

150.00  to 

2.50  to 

3.50  to 

5.00  to 

75.00  to 

20.00  to 

1.00  to 

.50  to 

3.00  to 

2.00  to 

.37^  to 

.10  to 

.50  to 

L50  to 

3.50  to 

3.50  to 

LOO  to 

.50  to 

4.00  to 

50.00  to 

2.00  to 
6.00  to 

7.00  to 

8.00  to 

10.00  to 

30.00  to 

8.50  to 

2.25  to 

1.00  to 

.37  to 

150.00  to 


1150.00 

8.00 

,     75.00 

1.50 

200.00 

12.00 

75.00 

4.75 

160.00 

200.00 

LOO 

30.00 

15.00 

350.00 

1.00 

250.00 

3.50 

5.00 

10.00 

100.00 

50.00 

L50 

2.00 

2.60 

5.00 

67f 

15 

LOO 

2.00 

6.00 

5.00 

L50 

.80 

7.00 

150.00 

2.50 
8.60 

8.00 

11.00 

12.00 

50.00 

1.50 

4.50 

3.50 

L50 

.50 

175.00 


United  States 
currency. 


1.00  to  1.25 

5.00  to  12.00 

L35to  1.50 

L75  to  2.50 


$39.00  to 

2.08  to 

18.20  to 

.52  to 

20.80  to 

3.12  to 

13.00  to 

.78  to 

52.00  to 

52.00  to 

.26  to 

7.80  to 

130.00  to 
.26  to 


$78.00 

4.16 

39.00 

.78 

104.00 

6.24 

39.00 

2.37 

83.20 

104.00 

.52 

15.60 

7.80 

192.00 

,52 


78.00  to  130.00 

1.30  to      1.82 

1.82  to 

2.60  to 

39.44  to 

10.44  to 

.52  to 

.26  to 
1.04  to 
1.04  to 

.19^  to 

.0.52  to 

.26  to 

.78  to 
L82  to 
1.82  to 

.52  to 

.26  to 

2.08  to 

26.00  to 


2.60 

5.20 

52.00 

26.00 

.78 

L04 

1.30 

2.60 

.353 

.078 

.52 

L04 

2.60 

2.60 

.78 

.416 

3.64 

78.00 


1.04  to 
3.12  to 

S.64  to 

4.16  to 

5.20  to 

13.60  to 

L82  to 

L17  to 

.52  to 

.29  to 

73.00  to 


L30 
4.16 

4.16 

6.72 

6.24 

26.00 

.78 

2.34 

1.82 

.78 

.26 

9  LOO 


.52  to         .65 

2.60  to      6.24 

.71  to        .78 

.91 


SILVER  AND  WHEAT.  13 

A  SOUTHERN  EDITOR  ON  "  MEXICAN  PROSPERITY." 

Throughout  the  South  much  Interest  has  recently  been  manifested  in  the 
published  statement  of  Mr.  Pleasant  A.  Stovall,  editor  of  the  Savannah  Press, 
who  has  been  making  a  tour  of  observations  in  Mexico.  He  says  that  every 
branch  of  business  in  Mexico  suffers  greatly  because  of  the  fluctuations  in 
the  price  of  silver.  But  his  most  important  testimony  relates  to  the  effect 
of  the  silver  standard  on  wages.    He  says: 

"  Men  who  went  to  Mexico  years  ago  and  invested  money  while  silver  was 
at  a  premium  are  banlirupt,  now  that  silver  has  gone  down  to  45  cents  on 
the  dollar.  Ask  the  American  in  business  in  Mexico;  ask  the  trainmen,  the 
yard-master,  the  laborers  from  the  States.  They  will  tell  you  they  want  the 
sound,  hard,  honest  dollar  of  the  American  eagle.  I  talked  to  a  score  of 
these  people,  and  to  a  man  they  advocated  sound  money.  It  is  the  old  story. 
The  laboring  man  wants  to  be  paid  in  the  best  dollar  the  market  affords, 
and  he  should  be.  He  gets  his  wages  now  in  silver,  whose  fluctuation  is  like 
the  tide  in  the  Bay  of  Fundy. 

I  found  no  complaint  among  the  bankers.  They  make  plenty  of  money 
discounting  currency  and  speculating  in  the  rise  and  fall  of  exchange.  An 
American  banking  house  in  Calle  San  Francisco  figures  out  a  probable  30  per 
cent  every  year.  It  is  not  hard  to  see  that  the  working  people  and  business 
men  must  pay  this  dividend  and  sustain  this  loss.  I  could  not  help  think- 
ing what  a  panic  Wall  street  would  have  in  this  country  if  the  United  States 
were  upon  a  silver  basis." 


INDUSTRIAL  CONDITIONS  IN  MEXICO. 

Side  by  side  with  the  glowing  encomiums  which  Mr.  W.  J.  Bryan  sheds 
upon  the  prosperous  condition  of  labor  prevailing  in  Mexico  under  the  silver 
standard,  gentlemen  will  be  interested  in  the  following  interview  with  ex- 
Congressman  John  A,  McShane,  himself  a  Democrat,  who  represented  the 
Omaha  district  in  the  House  of  Representatives: 

[From  the  Washington  Post  (Independent),  February  8,  1898.] 
"  I  will  not  deny  that  there  is  a  kind  of  prosperity  in  evidence  in  the  Re- 
public of  Mexico,"  said  Mr.  John  A.  McShane,  of  Omaha,  at  the  Arlington. 
Mr.  McShane  is  at  the  head  of  a  large  mining  concern  that  has  been  en- 
gaged In  silver  production  in  the  Mexican  State  of  Chihuahua  for  the  past 
ten  years. 

•'  It  is  of  this  sort:  The  Government  is  largely  back  of  it,  and  to  the  pater- 
nal fostering  of  the  Diaz  administration  it  is  mainly  due.  The  government 
subsidizes  breweries,  railroads,  industrial  plants,  and  aids  in  every  way  to 
build  up  the  material  resources  of  the  country.  Money  is  used  with  a  liberal 
hand,  and  as  a  consequence  there  is  much  activity  and  great  apparent  pros- 
perity. The  fact  that  Mexico  is  on  a  silver  basis  does  not  figure;  it  can't 
help  being  on  that  kind  of  a  basis,  but  I  should  be  sorry  to  see  the  United 
States  resort  to  any  such  policy. 


14  SILVER  AND  WHEAT. 

"  Ten  years  of  experience  in  that  country  has  forever  set  me  against  the 
adoption  of  a  monetary  system  which  is  not  only  in  disrepute  among  the 
leading  nations  of  the  worid,  but  which  is  about  to  be  discarded  by  countries 
lilie  Japan,  Brazil,  and  some  of  the  smaller  Spanish-American  governments 
that  were  formerly  on  a  silver  basis.  The  masses  in  Mexico  are  in  a  worse 
condition  than  I  trust  will  ever  befall  our  laboring  population.  This  I  can 
explain  by  referring  to  matters  that  have  come  under  my  personal  observa- 
tion. 

"  When  the  Sherman  purchasing  act  was  in  force  some  seven  years  ago, 
sliver  was  worth  $1.21,  and  a  United  States  dollar  was  worth  in  Mexico  100 
cents  in  Mexican  money.  The  dollars  of  the  two  countries  were  on  a  parity. 
At  this  time  we  employed  about  300  men  in  our  mines,  their  pay  ranging 
from  $1  to  $2.50  per  day.  It  took  approximately  $10,000  a  month  to  meet  the 
pay  roll.  The  money  to  cancel  this  expense  was  shipped  from  Omaha,  and 
it  was  exchanged  for  $10,000  of  Mexican  coin.  We  operated  general  mer- 
chandise stores  along  with  our  mining  concern,  and  at  the  time  I  speak  of 
sold  to  our  Mexican  employees  bacon  for  20  cents  a  pound. 

"  What  are  the  conditions  to-day?  We  still  hire  300  men  and  give  them  ex- 
actly the  same  scale  of  wages  that  obtained  prior  to  the  slump  in  silver 
caused  by  the  repeal  of  the  purchasing  clause  of  the  Sherman  Act.  Our  pay 
roll  still  aggregates  $10,000  a  month.  To  meet  this  we  have  shipped  us  a 
like  sum  of  United  States  money,  and  here  is  where  the  point  of  difference 
comes  in.  Instead  of  exchanging  that  amount  at  our  bank  for  its  nominal 
equivalent,  we  get  for  it  not  $10,000,  but  $22,000  of  Mexican  money, 

"  We  have  here  made  a  clear  gain  of  $12,000.  Our  employees  still  render 
us  100  cents'  worth  of  work,  for  which  they  used  to  get  100  cents,  and  do 
yet,  as  far  as  the  name  goes,  but  in  reality  they  receive  less  than  half  of 
what  should  be  theirs,  seeing  that  the  Mexican  coin  in  which  they  are  paid 
has  shrunk  to  less  than  half  of  its  former  value. 

"  But  there  is  more  still.  When  the  Mexican  miner  goes  to  buy  bacon  he 
finds  that  in  tendering  payment  he  cannot  buy  it  with  depreciated  money 
for  20  cents  a  pound;  the  price  is  now  45  cents.  It  would  still  be  so  if  he 
could  tender  a  dollar  as  good  as  that  given  him  for  his  labor  at  the  time  of 
the  repeal  of  the  Sherman  law.  The  $12,000  I  spoke  of  simply  comes  out  of 
the  labor  of  the  country,  and  when  the  toiling  class  of  any  nation  is  forced 
to  such  a  condition,  it  is  stretching  a  point  to  call  the  people  prosperous. 

"  If  the  fair  and  right  thing  were  done  by  these  hard-working  miners,  their 
wages  would  be  doubled.  The  man  that  now  gets  .$2  a  day  is  Justly  entitled 
to  $4,  but  labor  will  bring  only  what  price  is  fixed  in  market,  like  any  com- 
modity,  and  employers  are  not  yet  far  enough  advanced  in  philanthropy  to 
voluntarily  give  more  than  the  customary  rate. 

"  So  the  talk  about  the  prosperity  of  Mexico,  in  so  far  as  it  applies  to  the 
vast  body  of  its  citizens-the  common  people-is  a  myth.  If  there  is  pros- 
perity at  all,  it  is  not  due  to.  the  silver  standard,  but  in  spite  of  it." 


SILVER  AND  WHEAT.  16 

MODERN  WAR  CRIES  AGAINST  "THE  MONEYED  CLASSES" 
WERE  SOUNDING  PHRASES  IN  WASHINGTON'S  DAYS. 

It  must  not  be  supposed  that  the  hue  and  cry,  of  Democratic  origin,  about 
"the  moneyed  classes,"  and  the  arraignment  of  class  against  class,  also  of 
Democratic  birth,  are  comparative  novelties  in  American  politics.  They  were 
just  as  prevalent  under  the  first  Administration  as  they  have  been  under 
recent  Administrations,  The  term  most  popular  in  the  early  days  of  the 
Government  to  designate  those  who  were  supposed  to  be  inimical  to  the 
"  plain  people  "  was  '*  aristocrat." 

Washington  was  accused  of  being  an  "aristocrat."  His  neutrality .  doc- 
trine was  decidedly  unpopular,  and  the  same  element  which  in  the  present 
generation  vociferously  denounces  conservatism  in  our  Government  de- 
nounced President  Washington  for  refusing  to  take  part  in  the  wars  between 
England  and  France.  His  policy  was  characterized  as  a  betrayal  of  the 
masses,  who  were  clamoring  for  war.  But  when  that  policy  was  vindicated 
by  time  and  the  neutrality  doctrine  was  shown  to  have  brought  prosperity 
to  the  people  of  the  United  States,  the  Democrats  of  that  day  conveniently 
forgot  their  former  hostility  to  Washington's  wise  statesmanship,  and  Jeffer- 
son, the  leader  in  this  hostile  attitude,  oflScially  proclaimed  a  policy  against 
"  entangling  alliances." 

•*  A  curious  phase  of  prejudice,  as  already  noted,  was  instilled  into  the 
minds  of  the  unintelligent  Democracy  of  that  day—" 

Writes  J.  Harris  Patton,  M.  A.,  in  his  Short  History  of  the  Democratic 
Party  (1884)— 

"  They  were  often  led  by  the  insinuations  and  hasty  assertions  of  their 
leaders  to  suspect  the  well-to-do  and  the  educated  portion  of  the  community 
of  being  hostile  to  themselves.  These  leaders  at  first,  as  we  have  seen, 
characterized  those  who  sustained  the  policy  of  the  Government  for  the  first 
twelve  years  of  its  existence  as  "  aristocrats,"  and  that  term  of  presumed 
reproach  was  used  until  superseded  by  that  of  the  "  moneyed  power,"  mean- 
ing by  the  latter  epithet  those  who  continued  to  sustain  the  financial  princi- 
ples introduced  by  Alexander  Hamilton  and  embodied  in  the  policy  of  Wash- 
ington's Administration. 

"  The  policy  of  neutrality  in  the  meantime  became  popular.  The  epithet 
"  aristocrat,"  as  originally  used,  was  no  longer  available.  But  in  relation  to 
financial  measures,  taxes,  tariffs,  banks,  etc.,  '  moneyed  power '  suited  their 
purpose  admirably,  and  every  '  poor  man '  who  worked  for  wages  was  Im- 
pliedly Invited  to  look  upon  the  well-to-do  and  the  Intelligent  as  having  but 
little  sympathy  for  him. 

"In  order  to  secure  more  fully  their  ends,  the  leaders  in  these  societies 
(Democratic)  endeavored  to  array  one  portion  of  the  community  against  an- 
other. Those  who  were  in  favoi;  <"  neutrality  they  characterized  as  '  aristc 
crats; '  every  lover  of  order  or  supporter  of  the  National  Government  was 


16  SILVER  AND  WHEAT, 

denounced  as  such  and  as  an  #nemy  of  the  '  poor  man,'  a  favorer  of  the 
hated  aristocratic  England  and  not  of  democratic  France. 

"  It  has  been  the  policy  of  the  leaders  of  that  political  organization  from 
that  day  to  this  to  proclaim  themselves  preeminently  the  friend  of  the  '  poor 
man,'  as  they  affectionately  designate  those  who  obtain  a  living  by  working 
in  any  form  for  wages,  but  more  especially  those  engaged  in  manual  labor 
or  as  employees  in  manufacturing  establishments.  They  imply  at  the  same 
time  the  men  of  wealth  or  capitalists— in  a  word,  those  who  employ  work 
people — are  the  enemies  of  the  latter. 

"  The  epithets  which  they  then  used  had  a  meaning  and  a  purpose.  The 
term  *  aristocrat '  in  that  day  had  a  peculiarly  unpopular  significance,  and 
was  designed  to  excite  prejudice  against  those  who  were  in  favor  of  Wash- 
ington's policy.  By  this  term  they  meant  to  imply  that  the  advocates  of 
neutrality  were  imitators  of  the  English  aristocracy." 

In  this  connection  it  is  but  fair  to  ask  workingmen,  who  are  the  special 
object  of  the  appeals  of  the  Democratic  party  to-day,  how  they  can  reconcile 
this  interest  in  their  behalf  with  the  record  of  the  Democratic  party  in  the 
past,  which  for  many  years  preceding  the  war  was  officered  and  manned  by 
the  aristocratic  slave  owners  of  the  South.  It  was  this  party  that  put  a  stain 
on  freelabor  by  maintaining  slavery,  and  it  is  this  party  in  the  South  to-day 
that  still  looks  with  scorn  and  contempt  upon  factory  labor,  unable  to  find 
a  more  respectful  term  than  "  poor  whites  "  for  those  who  are  compelled  to 
make  their  living  by  manual  labor. 

Where  labor  is  respected  is  in  the  strongholds  of  the  Republican  party,  or 
at  least  where  the  Republican  party  has  been  able  to  make  its  policies  felt- 
not  in  the  Democratic  South. 

I  have  thus  shown,  Mr.  Chairman,  that  the  Republican  party  at  the  special 
session  of  this  Congress  placed  upon  the  statute  books  of  our  country  an 
act  which  in  the  natural  course  of  events  provided  ample  revenues  to  run 
the  Government,  and  did  what  it  promised  in  restoring  that  degree  of  pros- 
perity which  we  enjoyed  before  the  late  Democratic  Administration  came 
into  power  with  its  destructive  policies. 

The  measure  now  before  the  House  Is  called  for  by  extraordinary  cir- 
cumstances, which  all  recognize  as  being  absolutely  independent  of  normal 
conditions  and  which  could  not  be  provided  for  in  an  ordinary  tariff  bill. 
The  Dingley  Act  is  doing  its  work  faithfully  and  well.  We  may  regard  that 
part  of  our  work  as  a  closed  chapter.  But  other  duties  still  confront  us. 
Let  our  next  efforts  be  directed  to  the  enactment  of  legislation  looking  to  cur- 
rency reform.  With  the  wisdom  which  has  governed  this  Congress  in  the 
passage  of  a  satisfactory  and  patriotic  tariff  bill,  we  may  face  with  confi- 
dence the  duty  of  placing  our  currency  plan  upon  a  safe  and  enduring  basis 
that  shall  challenge  the  admiration  of  the  world. 


(No.  p.) 


DINQLEY  ON  THE  TARIFF  BILL 


Revenue,  Protection 


AND 


Commercial  Prosperity 


SPEECH    OF> 


Hon.  Nelson  Dingley,  Jr. 


IN  THE  HOUSE  OF  REPRESENTATIVES, 


Monday,  July  19,  1897. 


SF=>EECH     OF= 

Hon.  NELSON  DINQLEY,  Jr, 

OH     MAirSE. 

In  the  House  of  Representatives,  Monday,  July  19,  1897 


The  House  having  under  consideration  the  conference  report  on  tho 
bill  (iJ.  R.  379)  to  provide  revenue  for  the  Government  and  to  encourage 
the  industries  of  the  United  States — 

Mr.  DINGLE Y  said: 

Mr.  Speaker:  The  statement  which  has  been  read  presents  in  general 
terms  the  result  of  the  action  of  the  conferees  on  the  disagreeing  amend- 
ments to  the  tariff  bill. 

The  duty  on  lead  ore,  which  was  placed  by  the  House  at  1  cent  per 
pound,  was  raised  by  the  Senate  to  1%  cents  per  pound,  and  the  House  con- 
ferees, after  considerable  contention  in  reference  to  the  matter,  acceded  to 
the  Senate  amendment  so  that  that  duty  is  raised  to  ly^  cents  per  pound.  I 
may  add  that  this  is  the  same  as  the  duty  in  the  act  of  1890. 

The  duty  on  pigjead  was  placed  by  the  House  bill  at  2  cents,  but  in 
consequence  of  the  increase  in  the  duty  on  lead  ore  the  rate  has  been  in- 
creased in  conference  to  2%  cents  per  pound,  which  was  the  best  that  could  be 
obtained.  The  duties  on  white  lead  and  other  lead  products  have  been  ad- 
josted  to  the  duty  on  lead. 

Most  of  the  other  amendments  in  the  chemical  schedule  are  slight  re- 
ductions, so  that  the  average  ad  valorem  on  that  schedule  is  less  than  it 
was  in  the  bill  as  it  passed  the  House. 

CROCKEBY  AND  GLASSWARE,  ETC. 

The  duties  on  earthen  and  crockery  ware  have  been  agreed  upon  as  they 
stood  in  the  House  bill  and  as  they  stood  in  the  tariff  of  1890,  and  the  pro- 
visions remain  the  same  as  in  the  bill  which  passed  the  House. 

In  glassware  there  have  been  a  few  reductions  from  the  House  schedule, 
but  in  the  main  the  rates  of  the  House  schedule  have  been  adopted.  The 
reductions,  reluctantly  agreed  to,  are  in  the  paragraphs  relating  to  bottles, 
molded  and  pressed  glassware,  and  cylinder  and  crown  glass. 

Cement  was  pieced  by  the  House  at  a  duty  of  8  cents  per  hundred  pounds, 
and  the  Senate  increased  the  rate  to  11  cents  per  hundred  pounds;  but  in 
conference  the  Senate  receded  and  accepted  the  House  rate  of  8  cents  per 
hundred  pounds. 

Gypsum  rock  was  placed  on  the  free  list  by  the  action  of  the  House,  but 
the  Senate  placed  upon  that  article  a  duty  of  $1  per  ton.  In  conference  the 
duty  has  been  reduced  to  50  cents  per  ton,  and  the  duty  on  crude  and  cal- 
cined plaster  has  been  raised  to  |2.25  per  ton  to  correspond  with  the  duty  thus 
laid  upon  gypsum  rock. 

(2) 


The  duty  on  china  clay,  which  is  a  product  used  largely  in  the  manu- 
facture of  paper,  M-as  placed  in  the  House  bill  at  ?2  per  ton  and  was  in- 
creased by  the  Senate  to  $3  per  ton.  In  conference  the  Senate  receded  from 
its  amendment  and  accepted  the  House  rate  of  $2  per  ton. 

The  duty  on  fuller's  earth,  both  in  the  crude  and  in  the  ground  forms, 
has  been  slightly  raised  above  the  House  rate  and  below  the  Senate  rate. 

The  duty  on  marble  has  been  slightly  raised  in  accordance  with  the 
Senate  amendments. 

The  duty  on  freestone  and  granite  in  the  block  has  been  raised  from  10 
to  12  cents  per  cubic  foot,  and  that  on  dressed  granite  has  been  raised  to  50 
per  cent.,  as  proposed  by  the  Senate. 

IRON  AND  STEEL  AND  COTTON  TIES. 

In  metals  and  manufactures  of  metals  the  duties  remain  in  general  as 
Pxed  in  the  House  bill.  The  duty  on  tin  plate  is  precisely  the  same  as  in 
the  House  bill.  There  has  been,  however,  a  reduction  in  the  rates  on  struc- 
tural iron  of  one-tenth  of  1  cent  per  pound. 

Cotton  ties,  which  were  placed  on  the  dutiable  list  by  the  House  at  a 
rate  consonant  with  the  duty  imposed  upon  hoop  iron,  were  placed  by  the 
Senate  upon  the  free  list.  In  conference  they  have  been  restored  to  the 
dutiable  list,  but  at  the  reduced  rate  of  five-tenths  of  1  cent  per  pound. 

The  Senate  amendment  on  pocket  knives,  which  is  substantially  the  same 
as  the  paragraph  passed  by  the  House,  is  agreed  to,  and  compromise  rates 
have  been  adopted  upon  guns.  ; 

Nickel  ore  and  nickel  matter  were  placed  on  the  free  list  by  the  House. 
The  Senate  placed  both  on  the  dutiable  list,  but  in  conference  both  have 
been  restored  to  the  free  list. 

WOOD,  AND  MANUFACTURES  OF. 
In  general  the  schedule  of  wood  and  manufactures  of  wood  has  been  left 
almost  exactly  as  it  passed  the  House.  All  sawed  lumber,  except  timber 
exceeding  8  inches  square,  is  placed  at  $2  per  thousand,  and  the  reduction 
which  the  Senate  made  in  the  rates  on  dressed  lumber  has  been  receded  from 
and  the  House  rates  in  every  case  adopted. 

SUGAR. 

The  Hvuse  differential  between  raw  and  refined  sugar  and  the  general 
features  of  the  House  schedule  have  been  preserved,  and  the  Senate  amend- 
ment increasing  the  differential  to  one-fifth  and  reducing  the  duties  one- 
tenth  on  sugars  of  87  degrees  and  below  (which  would  have  made  a  difference 
of  thirteen-hundredths  between  88-degree  and  87-degree  sugar)  have  been 
rejected  in  conference.  In  deference  to  the  wishes  of  those  interested  in  beet- 
sugar  production,  the  Senate  rate  of  1.95  on  refined  sugar  has  been  retained 
as  an  encouragement  to  that  industry,  but  the  duty  on  raw  sugar  has  been 
increased  seven  and  one-half  one-hundredths,  precisely  the  same  as  the  in- 
crease on  the  refined,  so  as  to  leave  the  differential  between  the  raw  and 
refined  at  the  initial  point  of  100  degrees  the  same  as  in  the  House  bill,  and 
secure  so  much  additional  revenue. 

To  meet  the  objection  that  the  House  bill  provided  for  larger  equivalent 


ad  valorem  duties  on  the  lower  than  on  the  higher  grades  of  sugar,  the 
conference  agreement  commences  with  75  degrees  at  ninety-five  one-hun- 
dredths  of  a  cent  instead  of  1  cent,  and  then  raises  the  duty  on  each 
degree  of  raw  sugar  from  three  one-hundredths  to  three  and  a  half  one- 
hundredths,  so  that  when  the  one  hundredth  degree  is  reached  the  duty  will 
be  1.821^  and  the  duty  on  refined  1.95,  leaving  the  12V^  differential  between 
raw  and  refined  sugars  of  100  degrees  test,  as  it  stood  in  the  schedule  which 
passed  the  House. 

Under  the  bill  as  it  passed  the  House  the  duty  on  raw  sugar  of  100  degrees 
purity  would  be  1.75,  and  the  duty  on  refined  l.SlVz,  leaving  twelve  and  a 
half  hundredths  differential  at  this  point.  Under  the  conference  schedule 
the  duty  on  raw  sugar  of  100  degrees  purity  would  be  1.82i^,  and  the  duty 
upon  refined  sugar  1.95,  leaving  the  differential  at  this  point  precisely  the 
same,  12^^  cents  per  hundred,  in  both  schedules. 

BEET   SUGAR   PKOTECTED. 

By  this  arrangement  the  revenue  will  be  increased  about  two  and  a  half 
million  dollars  on  the  sugar  schedule,  because  the  increased  duty  has  been 
placed  not  simply  on  refined  sugar  (as  proposed  by  the  Senate),  but  also 
upon  raw  sugars,  the  point  where  revenue  will  be  received;  and  those 
who  are  endeavoring  to  develop  the  production  of  beet  sugar  in  this  coun- 
try will  have  seven  and  a  half  hundredths  greater  protection  than  they 
would  have  had  under  the  bill  as  it  passed  the  House,  but  the  differential 
as  between  refined  and  raw  sugars  will  remain  precisely  the  same  at  the 
100-degree  point. 

It  must  be  borne  in  mind  that  the  countervailing  duty  applies  only  to 
export-bounty-paying  countries  like  Germauy,  and  not  to  non-bounty-paying 
countries  like  Holland,  and  therefore  plays  no  part  in  the  protection  of  the 
refining  industry  against  the  competition  of  non-bounty-paying  countries. 
Moreover,  it  must  be  remembered  that  this  countervailing  duty  as  against 
refined  sugar  from  export-bounty-paying  countries  is  not  the'  entire  bounty 
on  refined  sugar,  but  the  difference  between  the  export  bounty  on  refined 
sugar  and  the  export  bounty  on  the  amount  of  raw  sugar  required  to  make 
100  pounds  refined,  and  this  difference  is  only  9  cents  per  hundred  pounds. 
NO  INCREASE  IN  DIFFERENTIAL. 

Inasmuch  as  it  is  contended  for  partisan  purposes  that  the  proposed 
sugar  schedule  increases  the  "differential,"  that  is,  the  difference  between  the 
duty  on  sufficient  raw  sugar  below  100  degrees  test  to  make  100  pounds  of 
refined  sugar  and  the  duty  on  100  pounds  refined  sugar,  above  that  of  the 
Wilson  tariff  of  1894,  I  desire  to  point  out  the  falsity  of  this  claim;  and  I 
will  select  sugars  of  92  degrees  test  for  this  purpose,  as  that  was  the 
average  test  of  the  importations  of  raw  sugar  last  year,  and  is  the  point 
chosen  for  assault. 

Let  it  be  borne  in  mind,  in  the  first  place,  that  while  the  Initial  point 
for  estimating  the  differential  is  100  degrees  raw  and  100  degrees  refined 
sugar — where,  as  I  have  already  stated,  this  differential  is  12%  cents  per 
hundred  pounds,  or  one-eighth  of  1  cent  per  pound,  yet  in  all  tariff  bills  this 
differential   necessarily  increases  as  sugars  of  a  less  polariscopic  test  are 


selected,  for  the  reason  that  the  percentage  of  hard  sugar  obtainable  in  the 
process  of  refining  diminishes  and  the  percentage  of  less  valuable  i>oft  sugars 
and  cost  of  refining  increases  faster  than  the  polariscopic  test  goes  down. 
But  this  increase  of  differential  is  adjusted  to  the  basis  of  12i^  cents  per 
hundred  fixed  for  sugars  of  100  degrees  test,  so  that  in  effect  the  differential 
is  equal  to  only  the  12i^  cents  on  such  basis. 

Thus,  according  to  the  oflSicial  figures  of  the  Treasury  Department,  the 
differential  between  the  duty  on  refined  and  the  duty  on  107.47  pounds 
raw  sugars  of  96  degrees  test  required  by  the  Treasury  drawback  regulations 
to  make  100  pounds  refined,  is,  under  the  present  Wilson  tariff,  19.82,  taking 
the  average  of  96-degree  sugar  (2.12),  or  21.02  if  St.  Croix  96-degree  sugar 
(valued  at  2.10)  is  taken  as  the  basis,  and  13.91  under  the  proposed  schedule. 
This  compares  with  German  fine;  but  compared  with  Dutch  refined,  which 
is  the  only  sugar  imported  anywhere  near  the  equal  of  American  refined 
(Dutch  costing  13  cents  per  hundred  pounds  more  than  German  fine),  the 
differential  would  be  25.2  per  hundred  under  the  present  tariff  and  only  13.91 
under  the  proposed  tariff. 

COMPUTATIONS  VAKY  UNI>ER  THE  TARIFF  OF  1894. 

It  will  be  seen  that  the  computations  vary  under  the  tariff  of  1894 
according  to  the  kind  of  raw  sugar  and  refined  sugar  selected,  because  the 
duties  under  the  present  law  are  ad  valorem,  while  under  the  proposed  sched- 
ule they  are  fixed. 

But  I  started  to  make  the  comparison  on  the  basis  of  92-degree  sugar, 
which  gives  a  larger  differential  because  of  the  increased  labor  of  refining 
and  the  lower  proportionate  yield  of  hard  sugars. 

The  average  dutiable  value  of  St.  Croix  92-degree  sugar,  which  is  the 
medium  sugar  of  92  degrees,  was  1.85  in  the  first  four  months  of  the  present 
year.  The  duty  (40  per  cent.)  on  1  pound  of  this  sugar  is,  therefore,  .74, 
and  the  duty  on  114.94  pounds  of  such  sugar  required,  according  to  the 
Treasury  drawback  regulations,  to  make  100  pounds  refined,  is  therefore  85 
cents. 

Dutch  refined  sugar,  the  quality  which  comes  near  our  American  refined, 
was  valued  at  2.60  in  the  same  period,  and  German  fine,  which  sells  for  nearly 
lialf  a  cent  less  in  our  markets  than  our  refined  because  of  its  inferior  quality, 
was  valued  at  2.47.  The  duty  (40  per  cent,  plus  121/^  cents)  on  100  pounds 
Dutch  refined  under  the  present  tariff  is,  therefore  $1.16%,  and  on  100  pounds 
German  fine  ?1.113.  Deducting  85  cents,  and  the  differential  under  the  pres- 
ent tariff  as  against  Dutch  refined  sugar  is  32  cents  per  hundred  pounds,  and 
against  German  fine  26.24  cents;  or  if  the  average  value  of  all  96-degree  sugar 
(195)  iuipoited  is  taken  as  the  basis,  then  each  differential  is  reduced  a 
little  over  five-tenths  of  1  cent. 

DIFITERENTIAL  LESS  THAN  UNDER  WILSON  BILL. 

Inasmuch  as  the  duty  on  92-degree  sugar  in  the  proposed  tariff  is  1.54% 
per  pound,  or  $1.77%  on  the  114.94  pounds  of  92-degree  sugar  required  to 
make  100  pounds  of  refined,  and  the  duty  on  both  Dutch  and  German  refined 
$1.95,  the  differential  in  the  proposed  tariff  is  not  quite  1T%  cents  on  both 
kinds  of  refined,  which  is  more  than  40  per  cent,  less  than  the  differential 
uuder  the  present  or  any  prior  tariff — a  fact  which  our  friends  on  the  other 


side  who  support  the  tariff  of  ISU-i,  and  who  are  denouncing,  for  partisan 
purposes,  the  proposed  differential  on  refined  sugar  as  a  surrender  to  the 
sugar  trust  (which  refines  70  per  cent,  of  our  product  as  against  30  per  cent, 
by  independent  refiners),  should  keep  in  mind  as  a  check  on  their  new-born 
zeal  against  trusts.  Let  me  repeat,  AT  EVERY  POINT  THE  DIFFEREN- 
TIAL ON  REFINED  SUGAR  IS  FROM  25  TO  50  PER  CENT.  LESS  THAN 
THE  DIFERENTIAL  GIVEN  BY  THE  TARIFF  OF  1894. 

BEET   SUGAR   INDUSTRY   HELPS   THE    FARMERS   AND   CRIPPLTS 

THE  TRUST. 

It  should  be  borne  in  mind  that  the  general  increase  of  duty  on  sugar 
made  in  the  proposed  tariff  has  been  made  not  only  to  increase  the  revenue, 
but  also  to  further  encourage  the  production  of  beet  sugar  in  th-'s  country 
and  furnish  a  new  crop  for  our  farmers,  who  are  being  eorely  pressed  as 
to  our  large  wheat  surplus  by  Russian  and  South  American  competition. 
I  believe  that  the  time  has  come  when  the  production  of  our  own  sugar  from 
the  beet  ought  to  be  and  can  be  successfully  entered  upon,  and  thus  the 
seventy-five  millions — soon  to  be  one  hundred  millions — sent  abroad  for  the 
purchase  of  our  sugar  ultimately  distributed  here  to  our  own  farmers.  Al- 
ready, indeed,  it  has  been  demonstrated  that  we  can  successfully  produce 
beet  sugar  here,  and  the  proposed  duty  placed  on  that  article  will  gradually 
bring  this  about,  while  for  the  time  being  affording  increased  revenue. 

CERTAINLY  NOTHING  CAN  BE  DONE  TO  SO  SUCCESSFULLY  CLIP 
THE  WINGS  OF  THE  SUGAR  TRUST  AS  TO  DEVELOP  OUR  BEET- 
SUGAR  INDUSTRY.  SUGAR-BEET  FACTORIES  TURN  OUT  THEIR  PRO- 
DUCT IN  A  REFINED  FORM,  AND  THUS  BECOME  THE  EFFICIENT  COM- 
PETITORS OF  OTHER  REFINERS.  THE  SUCCESSFUL  ESTABLISH- 
MENT OF  THE  SUGAR-BEET  INDUSTRY  IN  EVEN  HALF  OF  THE 
TWENTY-SIX  STATES  WHICH  CAN  AND  WILL  SUCCESSFULLY  GROW 
SUGAR  BEETS  UNDER  THE  PROPOSED  TARIFF  WOULD  SPEEDfLT 
END  ANY  SUGAR  TRUST,  AND  WOULD  AT  THE  SAME  TIME  CONFER 
IMMENSE  BENEFITS  ON  OUR  FARMERS  AND  ALL  OF  OUR  PEOPLE. 

TOBACCO. 

On  wrapper  tobacco  the  House  fixed  a  duty  of  $2  per  pound — the  same 
as  in  the  tariff  of  1890 — which  the  Senate  amendment  reduced  to  ^1.75  per 
pound,  the  rate  in  the  present  tariff  being  ?1.50.  After  more  or  less  con- 
tention in  the  conference,  a  compromise  agreement  was  reached  placing  the 
duty  on  wrapper  tobacco  at  $1.85  per  pound,  which  seemed  to  adjust  the 
disagreeing  views  that  existed  not  only  among  the  conferees,  but  among 
Senators  and  others  who  had  placed  particular  stress  on  this  provision. 

The  duty  on  filler  tobacco  has  been  agreed  to  at  the  Senate  rate  of  35 
cents  per  pound  instead  of  the  House  rate  of  65  cents  per  pound. 

AGRICULTURAL  PRODUCTS,  FISH  AND  COTTON. 

On  agricultural  products  in  general  the  duties  of  the  act  of  1890  have 
been  restored.  The  main  change  has  been  in  oranges  and  lemons,  on  which 
the  rate  as  fixed  by  the  House  was  three-fourths  of  1  cent  per  pound.  The 
Senate  fixed  the  duty  at  1  cent  per  pound,  and  the  House  conferees  have  re- 


ceded  and  agreed  to  the  Senate  amendment.  In  general,  the  duties  on  citrus 
fiuits,  raisins,  and  other  products  competing  especially  with  California  fruic 
products  have  been  raised. 

Fish  are  placed  at  rates  a  little  higher  than  those  which  were  provided 
by  the  act  of  1890,  but  a  little  lower  than  those  provided  in  the  House 
schedule.  The  conferees  on  the  part  of  the  House  insisted  as  strenuously 
as  possible  on  the  House  schedule,  regarding  the  rates  as  fixed  by  the  House 
as  reasonable  and  fair,  but  the  Senate  conferees  were  insistent  on  the  point; 
and  with  a  compromise  upon  one  paragraph,  the  Senate  rates  on  fish  were 
agreed  to. 

The  duty  of  20  per  cent,  on  imported  cotton,  as  proposed  by  the  Senate, 
has  been  receded  from  by  the  Senate  conferees,  leaving  cotton  upon  the  free 
list.  With  reference  to  this  I  desire  to  say  that  careful  investigation  by  the 
conferees  made  it  clear  that  a  duty  upon  cotton  would  be  simply  a  duty  upon 
lOgyptian  cotton,  and  would  merely  obstruct  our  cotton  manufacturing  in- 
terests and  benefit  no  one,  because  Egyptian  cotton  is  of  a  grade  between 
our  uplands  and  Sea  Island  cotton,  and  has  certain  qualities  possessed  by 
no  other  cotton.  If  a  duty  should  be  placed  on  this  cotton,  the' effect  would 
be  to  transfer  abroad  the  manufacture  of  goods  made  from  Egyptian  cotton, 
without  benefiting  anyone. 

It  seemed,  therefore,  to  the  House  conferees  to  be  wise  to  leave  this 
matter  as  it  had  been  left  in  all  previous  tariffs.  If  a  duty  had  been  placed 
upon  cotton,  as  the  cotton  goods  imported  are  mainly  manufactured  from 
Egyptian  cotton,  it  would  have  been  necessary  to  raise  the  cotton  schedule 
all  along  the  line.  It  was  not  thought  wise  to  do  this.  It  was  not  believed 
that  a  duty  upon  Egyptian  cotton  under  those  circumstances  could  be  of  any 
possible  benefit  to  anyone.  Therefore  cotton  is  left  on  the  free  list  as  here- 
tofore. 

The  Senate  rates  on  spirits,  wines,  etc.,  are  adopted  in  the  main. 

TEXTILE  MANUFACTURES. 

Compromise  rates  on  manufactures  of  jute,  flax,  etc.,  have  been  adopted 
with  the  purpose  of  developing  the  growth  of  flax  in  this  country  for  textile 
purposes  and  establishing  here  the  linen  manufacture,  first  by  taking  the 
lower  grades  and  subsequently  the  higher  grades,  so  that  in  the  main  this 
schedule  as  to  manufactures  has,  with  certain  reductions,  been  preserved  as 
passed  by  the  House. 

Cotton  bagging,  burlaps,  bags,  and  straw  matting,  which  the  Senate 
placed  on  the  free  list,  are  restored  to  the  dutiable  list  at  reduced  rates. 

WOOL  AND  WOOLENS. 

The  House  rates  on  wool  of  classes  1  and  2  (which  comprise  the  clothing 
wools),  11  cents  upon  the  great  body  of  that  wool  and  12  cents  upon  the 
small  amount  of  combing  wool  that  there  may  be,  have  been  agreed  to,  so 
that  in  this  respect  the  bill  stands  precisely  as  it  left  the  House  and  pre- 
cisely as  provided  in  the  tariff  of  1890. 

The  Senate  increased  the  duties  on  carpet  wools  by  first  placing  specific 
duties  on  them — duties  of  4  cents  on  wools  rang^irts;  in  value  up  to  10  cents 
and  7  cents  on  those  valued   above   10  cents — tl.e  efrect  of    which  was  to 


8 

Increase  the  duties  on  carpet  wool  to  a  considerable  extent.  In  the  con- 
ference the  Senate  has  receded  from  a  large  part  of  this  increase  by  fixing 
the  dividing  line  at  12  cents  instead  of  10  cents;  so  that  while  there  is  a 
slight  increase  on  carpet  wools,  yet  it  is  much  less  than  was  proposed  by 
the  Senate.  The  House  provision  transferring  six  kinds  of  wool  from  class 
3  (carpet  wools)  to  clothing  wools  has  been  agreed  to.  This  removes  the 
irritation  which  was  caused  by  the  use  of  these  so-called  carpet  wools  for 
clothing  purposes. 

MANUFACTURES  OF  WOOL. 

The  Senate  rates  on  manufactures  of  wool  have  been  in  the  main  adopted, 
and  they  are  substantially  the  same  as  in  the  tariff  act  of  1890.  The  House, 
it  will  be  remembered,  provided  a  specific  schedule  on  manufactures  of  wool. 
The  House  conferees  endeavored  to  preserve  that  specific  schedule;  but  the 
Senate  conferees  have  objected,  for  reasons  that  seemed  proper  to  them. 
The  House  has  receded,  and  with  slight  amendments  to  the  Senate  schedule, 
have  adopted  it  as  it  passed  the  Senate. 

It  is  believed  that  the  transfer  of  wool  from  the  free  list,  where  it  was 
placed  by  the  tariff  of  1894  to  the  dutiable  list,  with  the  rates  of  the  tariff 
of  1890  as  to  clothing  wool,  will  make  wool-growing  again  profitable  to  our 
farmers  and  stop  the  destruction  of  our  flocks. 

The  duties  on  silk — Schedule  L — remain  substantially  at  the  same  rate 
as  provided  by  the  House  bill,  and  are  increased  from  5  to  10  per  cent,  above 
the  present  law.  The  only  material  difference  is  in  reference  to  a  paragraph 
relating  to  what  is  known  as  Jacquard  silk,  or  silk  made  on  Jacquard  looms. 
With  reference  to  these,  a  rate  of  50  per  cent,  ad  valorem  is  fixed  instead  of 
the  specific  rate  provided  by  the  House  bill  on  all  piece  silks.  In  other 
respects  the  silk  schedule  is  the  same  as  adopted  by  the  House. 

The  sundries  schedule  is  slightly  changed  from  the  form  adopted  by  the 
House.  In  one  particular — that  is,  in  reference  to  coal — there  has  been  a 
change.  The  House  provided  for  a  duty  of  75  cents  per  ton  on  bituminous 
coal.  The  Senate  has  fixed  that  duty  at  67  cents,  which  is  the  Canadian 
duty,  the  object  being  to  make  our  duty  correspond  with  theirs,  for  purposes 
that  will  be  generally  understood  upon  the  floor;  and  further  have  reduced 
the  duty  on  culm  to  15  cents  per  ton.  A  provision  was  inserted  which  is 
intended  to  apply  to  coal  commercially  designated  as  anthracite  coal,  coming 
in  on  the  Pacific  coast,  but  approximating  the  condition  of  bituminous  coal. 
Such  anthracite  coal  as  is  produced  in  this  country  is  left  on  the  free  list. 

PROTECTION  TO  HIDES. 

The  House  placed  hides  of  cattle  on  the  free  list,  where  they  have  been 
in  previous  tariffs  since  1873,  but  the  Senate  placed  them  on  the  dutiable 
list  with  a  duty  of  20  per  cent.  The  difference  between  the  two  Houses  was 
adjusted  by  reducing  the  duty  to  15  per  cent.,  with  a  proviso  allowing  a  draw- 
back of  the  entire  duty  paid  on  hides  used  in  tanning  leather  actually  ex- 
ported. 

Paintings  and  statuary  for  private  use  were  placed  on  the  dutiable  list  at 
20  per  cent.,  and  thcte  for  public  exhibition  were  left  on  the  free  list. 


9 

THE  FREE  LIST. 

The  free  list  which  passed  the  House  has  been  agreed  to  in  conference 
with  very  slight  changes.  Bolting  cloths  and  some  of  the  essential  oils  have 
been  added  to  the  list.  The  provision  of  the  House  relating  to  the  bringing 
in  of  wearing  apparel  and  personal  effects  by  tourists  was  agreed  to.  This 
provision  is  inserted  to  break  up  the  abuses  arising  from  the  practice  of 
tourists  returning  from  Europe  bringing  with  them  wearing  apparel  in  large 
quantities,  clothing,  and  other  articles  of  personal  property  which  are  duti- 
able under  our  laws. 

This  abuse  has  grown  to  such  an  extent  that  a  recent  investigation  by 
the  Treasury.  Department  disclosed  the  fact  that  about  ?40,000,000  of  dutiable 
goods,  classified  as  wearing  apparel  and  persdhal  effects,  escaped  duty  during 
the  past  year  under  the  operation  of  existing  statutes.  It  is  estimated  by 
Treasury  officials  that  this  will  add  at  least  $10,000,000  to  the  revenues  of 
the  Government,  and  will  be  just  to  dealers  in  this  country,  who  pay  duties 
on  the  articles  they  import  for  sale  to  our  own  people. 

Mr.  CUMMINGS.  Will  the  gentleman  from  Maine  allow  me  to  ask  him 
ft  question?  What  was  done  with  the  duty  on  precious  stones?  I  refer  par- 
ticularly to  diamonds. 

Mr.  DINGLEY.  The  duty  is  placed  at  10  per  cent.  I  should  have  been 
very  glad,  for  myself,  to  have  put  even  a  very  much  heavier  duty  on  articles 
of  that  kind;  but  it  was  the  unanimous  opinion  of  all  the  present  administra- 
tive officers,  as  it  was  the  opinion  of  the  administrative  officers  under  the 
last  Administration,  that  whenever  the  duty  on  diamonds  is  placed  above 
10  per  cent,  ad  valorem,  then  they  are  smuggled,  and  instead  of  obtaining 
revenue  from  them  we  fail  to  obtain  revenue.  The  officers  presented  statis- 
tics clearly  establishing  the  fact  that  the  largest  revenue  from  diamonds  had 
been  obtained  when  the  duty  was  placed  at  10  per  cent.;  that  this  was  not 
the  smuggling  point;  but  that  when  it  went  above  that,  then  smuggling  went 
on  by  wholesale. 

RECIPROCITY. 

I  am  reminded,  Mr.  Speaker,  that  I  have  omitted  to  give  a  statement  of 
the  reciprocity  features  of  the  bill  as  agreed  to,  which  I  had  intended.  In 
substance,  the  agreement  of  the  conferees  combines  the  reciprocity  clause  of 
the  House  and  that  incorporated  in  the  bill  by  the  Senate,  with  certain 
amendments,  which  substantially  unite  the  two  plans,  so  that  both  may  be 
made  available  if  desired.  One  of  the  amendments  which  has  been  adopted 
la  vital  in  its  effect. 

The  Senate  provided  that  the  President  might  enter  into  commercial 
treaties  with  foreign  countries,  and  when  ratified  by  the  Senate  they  should 
become  binding  on  the  country.  The  House  conferees  insisted  upon  an 
amendment  that  they  should  not  become  binding  until  ratified  by  Congress. 
In  other  words,  the  House  conferees  maintained  that  the  House  should 
approve  as  well  as  the  Senate  before  any  such  commercial  treaties  shouUi 
take  effect,  and  the  Senate  conferees  conceded  the  point.  (Applause.)  Other- 
wise, in  general,  the  Senate  as  well  as  the  House  plans  have  been  adopted 
with  certain  modifications,  so  that  both  plans  if  desirable  may  be  used  in 
securing  acceptable  commercial  arrangements. 


10 

Mr.  OVERSTREET.  How  does  this  compare  with  the  provision  of  the 
law  of  1890? 

RECIPROCITY  FEATURES  EXPLAINED. 

Mr.  DINGLEY.  The  provision  of  the  law  of  1890  covered  sugar  and 
hides,  which  have  been  omitted  because  they  have  been  made  dutiable.  We 
have  added  to  coffee  and  tea,  tonka  beans  and  vanilla  beans,  which  are  on 
the  free  list,  as  articles  to  be  used  by  the  President  under  the  provision  of 
the  act  of  1890,  and  we  have  included  certain  dutiable  articles  that  may  be 
used.  Under  the  Senate  provision  there  would  be  the  delay  of  obtaining  the 
two-thirds  vote  of  the  Senate  after  the  President  had  made  the  arrangement, 
and  then  the  delay  in  securing  the  approval  of  the  House  of  Representa- 
tives; and  it  was  thought  desirable  that  the  House  provision,  which  put  in 
the  President's  hands  the  important  powers  of  using  certain  articles  without 
going  to  Congress,  should  also  be  adopted.  The  conferees  of  both  the  House 
and  Senate  have  unanimously  agreed  on  the  joint  plans,  which  combine  all 
that  appears  to  be  practicable  in  both  provisions. 

Mr.  OVERSTREET.  Is  it  regarded  as  a  broader  measure  than  that  of 
1890? 

Mr.  DINGLEY.    Oh,  very  much  broader. 
*  INTERN AI.  REVENUE  PROVISIONS. 

Mr.  Speaker,  I  come  now  to  the  internal  revenue  features  of  the  bill 
which  the  Senate  has  added.  The  Senate  increased  the  internal  revenue  tax 
on  cigarettes,  and  this  has  been  agreed  to  by  the  House  with  an  amendment 
covering  cigarettes  wrapped  in  tobacco,  and  amendments  to  facilitate  the 
collection  of  the  tax.  The  Senate  provisions  changing  the  law  so  as  to 
allow  no  rebate  on  the  tax  on  beer  has  been  agreed  to.  Under  the  present 
law,  as  gentlemen  know,  a  rebate  of  over  7  cents  is  permitted,  so  that  the 
tax  of  $1  provided  by  law  amounts  only  to  about  92  cents.  The  amendment 
fixes  the  tax  at  a  full  dollar,  and  will  add  about  $2,000,000  to  the  revenue  of 
the  Government  from  this  source. 

The  Senate  provision  for  a  stamp  tax  upon  the  issue  andtransferof  stcck 
certificates,  bonds,  etc.,  is  omitted  from  the  bill,  for  the  reason  that  on  careful 
investigation  it  has  been  found  that  the  class  of  persons  whom  it  was  origi- 
nally supposed  we  should  be  able  to  reach  cannot  be  reached,  and  therefore 
whatever  small  amount  of  revenue  might  be  received  as  the  result  of  this  tax 
would  be  collected  from  men  who  are  doing  legitimate  business  upon  a  small 
scale.  It  was  found  that  it  would  be  almost  impossible  to  execute  the  law 
so  far  as  it  endeavored  to  reach  such  persons.  Then,  again,  it  w^as  found 
not  only  that  it  would  be  very  difficult  of  enforcement,  but  that  the  amount 
of  revenue  to  be  obtained  from  it  would  be  exceedingly  small,  and  it  was 
thought,  at  least  in  the  present  tariff  bill,  without  opportunity  to  examine 
thoroughly  in  reference  to  legislation  of  that  character,  that  it  would  be 
unwise  to  hastily  enter  upon  it  without  careful  investigation  under  all  the 
circumstances.  There  was  also  some  question  as  to  the  constitutionality  of 
certain  provisions  in  the  scheme. 

The  administrative  sections  which  were  added  to  the  bill  by  the  Senate, 
and  which  have  been  agreed  to  with  certain  amendments  by  the  House  con- 
ferees, are  almost  exactly  the  same  as  two  sections  that  were  in  the  adminis- 


11 

tratlve  bill  passed  by  the  House  in   the  Fifty-fourth  Congress,  which  the 
House  therefore  had  previously  accepted. 

THE  RETROSPECTIVE  CLAUSE. 

Mr.  TERRY.     What  became  of  the  retroactive  clause  of  the  bill? 

Mr.  DINGLEY.  I  regret  to  say  that  the  Senate  declined  to  concur  in 
that,  and  made  this  decision  known  within  a  few  weeks  after  the  bill  passed 
the  House  in  March.  I  think  it  was  exceedingly  unfortunate  that  the  action 
of  the  House  with  reference  to  that  retrospective  clause  was  not  concurred  in; 
or  at  least,  if  not  concurred  in  finally,  that  it  was  not  left  to  stand  until  the 
present  time.  If  that  had  been  done,  it  would  have  saved  more  than  $25,000,- 
000  of  revenue  to  the  country. 

The  wisdom  of  the  action  of  the  House  in  that  matter  seems  to  me  to  have 
been  clearly  established  by  subsequent  events.  Since  the  1st  of  March  there 
have  been  imported  into  this  country,  in  anticipation  of  an  Increase  of  duty 
on  articles  on  which  we  have  raised  revenue,  goods  which,  if  they  had  been 
Imported  as  required  for  consumption  during  the  fiscal  year  upon  which  we 
have  just  entered,  would  have  yielded  not  far  from  $40,000,000  of  revenue.  Of 
course  there  are  no  means  of  avoiding  these  difl^icu] ties,  unless  by  some  such 
retroactive  provision  as  was  contained  in  the  bill  as  it  passed  the  House. 

Mr.  OLMSTED.  I  would  like  to  ask,  with  reference  to  the  action  of 
conferees  on  the  bill  with  regard  to  rails  made  wholly  or  in  part  frcfli  im- 
ported iron,  whether  any  provision  is  ma^e  for  a  drawback? 

Mr.  DINGLEY.  The  old  provision  with  reference  to  drawback  continues- 
In  force.  There  is  no  modification.  In  other  w;ords,  the  administrative  officers 
cannot  see  a  method  of  determining  whether  the  exported  article  is  made  of 
an  imported  product  or  not  except  under  existing  regulations,  and  a  draw- 
back provision  of  the  character  desired  by  some  is,  in  the  opinion  of  these 
officers,  susceptible  of  very  great  fraud.  I  may  state  to  the  gentleman  from 
Pennsylvania,  however,  that  this  matter  was  not  In  conference  at  all. 

TWO    HUNDRED   AND    TWENTY-EIVE    MILLIONS    REVENUE. 

Setting  aside  the  effect  of  the  anticipatory  importations,  there  is  no  doubt 
that  the  bill  as  agreed  to  by  the  conferees  will  yield  not  less  than  two  hun- 
dred and  twenty-five  millions  per  annum,  an  increase  of  at  least  $75,000,000 
above  the  present  law.  The  present  law  in  the  fiscal  year  1896  yielded  $160,- 
000,000  of  revenue,  but  that  revenue  was  increased  abnormally  by  large  im- 
portations of  manufactures  of  wool.  In  the  previous  year  the  present  tariff 
had  yielded  a  revenue  of  about  $144,000,000,  In  the  last  fiscal  year,  ended 
the  30th  of  June,  If  it  had  not  been  for  the  fact  that  a  new  tariff,  imposing 
to  a  certain  extent  higher  duties,  was  under  consideration,  the  revenue  under 
the  present  law  would  not  have  exceeded  $140,000,0000. 

As  it  is,  the  revenue  from  customs  under  the  present  law  in  the  last 
fiscal  year  was  about  $174,000,000.  But  $32,000,000  of  that  at  least  was  caused 
by  anticipatory  importations  and  withdrawals  from  bond;  for  if  the  revenue 
from  customs  had  continued  for  the  last  four  months  of  the  last  fiscal  year 
as  It  had  continued  during  the  eight  months  previous,  the  revenue  would  not 
have  exceeded  $140,000,000.  This  makes  the  average  annual  revenue-pro- 
ducing quality  of  the  present  Wilson  tariff  about  $150,000,000. 


12 

I/OSS  BY  ANTICIPATORY  IMPORTATIONS. 

As  I  have  already  stated,  it  is  probable  that  the  Treasury  has  lost  by 
anticipatory  importations  of  wool,  sugar,  manufactures  of  wool,  and  certain 
other  articles  on  which  the  duty  has  been  increased,  at  least  $40,000,000. 
Now,  this  $40,000,000  must  be  deducted  from  this  $225,000,000  which  this  bill 
will  yield.  That  leaves  ?185,000,000.  So  that  this  bill,  including  the  inter- 
nal revenue  provision,  notwithstanding  the  loss  of  $40,600,000  by  anticipatory 
importations,  is  estimated  by  the  members  of  the  Senate  Finance  Committee 
as  likely  to  yield  $185,000,000  during  the  current  fiscal  year.  The  Treasury 
officials,  however,  put  the  revenue  from  the  proposed  tariff  for  the  present 
year  at  one  hundred  and  seventy-seven  millions — eight  millions  less.  It 
must  be  borne  in  mind  also  that  thirty-two  millions  paid  into  the  Treasury 
In  the  last  four  months  on  anticipatory  importations  and  withdrawals,  and 
credited  to  the  last  fiscal  year,  really  belong  to  the  revenue  for  the  present 
fiscal  year. 

Now,  it  is  estimated  that  the  revenue  from  all  other  sources — ordinary 
Internal  revenue  tax  and  miscellaneous  sources  outside  of  postal  revenue — 
will  be  in  the  neighborhood  of  $180,000,000,  probably  $185,000,000.  Now,  these 
two  estimates  give  us  a  revenue  in  the  neighborhood  of  $370,000,000,  or,  ac- 
cepting the  Treasury  estimate,  $362,000,000.  The  expenditures  of  the  Govern- 
ment during  the  last  fiscal  year,  aside  from  the  postal  expenditures  paid  by 
postal  revenues,  were  $365,000,000.  But  there  were  undoubtedly  some  ex- 
penditures paid  after  the  1st  of  July  that  belong  to  the  last  fiscal  year.  So 
that  the  expenditures  may  be  placed  at  $370,000,000  per  annum. 

ENOUGH  REVENUE  INSURED. 
Now,  if  the  Senate  Finance  Committee  have  correctly  estimated  the  an- 
ticipatory importations  at  $40,000,000  loss  only,  then  there  would  be  enough 
revenue,  notwithstanding  the  loss  of  $40,000,000  during  the  current  fiscal  year, 
to  meet  the  expenditures.  But  if  from  any  cause  the  effect  of  these  antici- 
patory importations  shall  prove  to  be  greater  than  estimated,  then  unques- 
tionably there  can  be  taken  with  safety  from  the  cash  in  the  Treasury,  ob- 
tained by  the  issue  of  bonds  under  the  last  Administration,  at  least  $30,000,- 
000;  so  that,  with  the  cash  in  the  Treasury  and  with  the  revenue  that  will 
come  from  this  bill,  there  is  no  doubt  that  the  expenditures  of  the  Govern- 
ment for  the  current  fiscal  year  will  be  fully  met.  And  after  this  fiscal  year, 
when  this  bill  shall  have  become  law,  the  revenue  will  be  increased  to  that 
point  where  every  expenditure  will  be  met,  and  there  will  be  a  surplus  left 
(applause  on  the  Republican  side)  with  which  can  be  resumed  the  reduc- 
tion of  the  principal  of  the  public  debt.  (Loud  applause  on  the  Republi- 
can side.) 

LOW  GRADE  SUGARS. 

Mr.  LACEY.  I  should  like  to  ask  the  gentleman  a  question  in  refer- 
ence to  sugar.  I  notice  the  compromise  increases  the  rate  on  low  grades 
of  sugar. 

Mr.  DINGLEY.  The  lowest  grades  are  less  than  in  the  original  House 
bill  up  to  84  degrees.  Eighty-five-degree  sugar  is  the  same,  and  from  that 
point  the  new  rates  are  more — at  96  degrees,  five  and  a  half  hundredths 


more;  and  at  100  degrees,  seven  and  a  half  hundredths  more;  and  on  refined 
sugar,  seven  and  a  half  hundredths  more. 

Mr.  LACEY.  What  quantity — how  many  millions  of  pounas  or  how 
many  tons — have  been  imported? 

Mr.  DINGLEY.  If  you  refer  to  low  grades  of  sugar,  below  84  degrees, 
then  there  is  scarcely  2  per  cent,  of  such  sugar  imported  into  this  country; 
certainly  not  over  4  per  cent,  under  84  degrees  test. 

Mr.  LACEY.  Then  this  change  does  not  give  any  premium  to  those  who 
have  imported  this  kind  of  sugar  pending  the  contest  between  the  two 
Houres? 

Mr.  DINGLEY.  Not  at  all.  As  a  matter  of  fact,  these  low  grades  of 
sugar  cannot  be  used  in  making  hard  sugars,  and  the  Importations  of  them 
are  veiy  small. 

THE  NET  BESULT  AS  TO  SUGAR. 
Mr.  COOPER,  of  Wisconsin.     I  should  like  to  ask  the  gentleman  what  the 
ret  result  is  as  to  sugar.     Does  the  rate  agreed  upon  by  the  conferees  lessen 
or  increase  the  rate  of  protection,  the  amount  of  protection  given  to  the  sugar 
trust  by  the  original  House  bill? 

Mr.  DINGLEY.  The  differential  as  between  raw  and  refined  sugars  is 
precisely  the  same  in  this  bill  on  100-degvee  sugar  as  when  it  passed  the 
House.  Under  the  bill  as  it  passed  the  House  a  duty  of  1  cent  was  placed 
upon  sugar  polarizing  75  degrees,  and  an  increase  in  duty  of  three  one-hun- 
dredths  of  a  cent  for  each  degree  running  up  to  100.    Now,  that  left  a  duty 

of  1.75  dn  raw  sugar  of  full  purity 

Mr.  COOPER,  of  Wisconsin.     What  do  you  mean  by  that— 100  degrees? 
Mr.  DINGLEY.     One  hundred  degrees  is  full  purity,  which  is,  of  course, 
what  refined  sugar  Is.     That  left  a  duty  on  raw  sugars  of  full  purity,  of  100 
degrees,  of  one  and  seventy-five  one-hundredths  of  a  cent. 

Mr.  JOHNSON,  of  Indiana.  But  the  duty  on  raw  sugar  in  this  confer- 
ence report  is  higher  than  in  the  bill  as  it  left  the  House? 

Mr.  DINGLEY.  Certainly.  It  has  been  raised  from  84  degrees  up,  so  that 
the  increase  at  100  degrees  amounts  to  seven  and  one-half  one-hundredths 
of  1  cent  per  pound  in  order  to  give  that  additional  encouragement  to  beet- 
sugar  production. 

REFINED   SUGAR  UNDER   THE   DINGLEY   BILL. 
Mr.  JOHNSON,  of  Indiana.     What  is  the  duty  placed  upon  refined  sugar 
in  this  bill  as  compared  with  the  existing  rate? 

Mr.  DINGLEY".  The  duty  on  refined  sugar  is  40  per  cent  on  both  raw 
and  refined,  with  one-eighth  of  1  cent  additional  on  refined  in  the  present 
Wilson  tariff,  which  amounts  to  1.113  cents  per  hundred  pounds,  and  the 
duty  on  raw  sugar  of  100  degrees  purity  is  89.48,  leaving  a  differential  of 
4.82.  And  in  this  bill  the  duty  is  1.95  on  refined  sugar  and  1.821/2  on  raw 
purar  of  100  degrees  test,  .making  a  differential  of  12^^  cents  per  hundred 
at  that  point,  with  a  slight  increase  as  the  polariscopic  test  goes  down  to 
cover  the  increased  cost  of  refining  and  the  loss. 

Mr.  JOHNSON,  of  Indiana.  Therefore  there  is  a  marked  reduction  in 
duty  on  refined  sugars. 

Mr.  DINGLEY.     Certainly;  an  average  of  40  per  cent. 


14 

Mr.  'SIMPSON,  of  Kareas.  T  desire  to  ask  the  gentleman  a  question. 
While  this  conference  agreement  does  not  increase  the  duty  on  refined  sugar, 
does  it  not  have  the  effect  of  decreasing  the  duty  on  low  grade  raw  sugars, 
thus  giving  the  manufacturers  cheaper  raw  material? 

Mr.  DINGLEY.  Not  at  all.  Hard  sugar,  that  is,  granulated  sugar,  can- 
not be  made  from  those  low  grade  sugars.  In  fact,  I  may  say  with  reference 
to  that  question  that  careful  investigation  has  shown  clearly  that  the  rate 
we  fix,  making  a  slight  reduction  on  these  few  lower  grades,  gives  an  almost 
exact  equivalent  ad  valorem  duty  to  that  placed  on  the  higher  grades. 

FOBTY  PEB  CENT.  LESS  THAN  WILSON  BATES. 

In  general,  it  may  be  said  that  the  differential  on  refined  sugar  under 
the  schedule  which  has  been  presented,  which  is  but  a  slight  modification 
of  the  original  House  schedule,  except  that  it  increases  the  duty  on  raw 
sugars,  is  exactly  the  same  at  the  100-degree  point  in  the  schedule  here  pro- 
posed as  In  the  bill  passed  by  the  House.  THERE  IS  A  SMALL  INCREASE 
AS  THE  POLARISCOPIC  TEST  GOES  DOWN  FOR  THE  REASONS  I  HAVE 
STATED;  BUT  IT  IS  ABOUT  40  PER  CENT.  LESS  THAN  THE  DIFFER- 
ENTIAL UNDER  THE  EXISTING  LAW  AT  ALL  POINTS. 

Mr.  DOCKERY.  The  statement  is  made  that  the  bounty  to  the  sugar 
trust  has  been  reduced  by  this  bill;  and  I  sincerely  hope  that  is  an  accurate 
statement. 

Mr.  DINGLEY.  The  differential  on  refined  sugar  is  considerably  less 
than  under  the  present  Wilson  tariff. 

Mr.  DOCKERY.  Then,  as  I  understand,  you  claim  that  the  bounty  car- 
ried in  this  bill  is  less  than  under  existing  law? 

Mr.  DINGLEY.  Certainly.  The  gentleman  means  the  differential  I  sup- 
pose? 

Mr.  DOCKERY.     Yes,  sir. 

Mr.  DINGLEY.  The  differential,  as  the  gentleman  knows,  is  the  dif- 
ference between  the  duty  imposed  on  such  a  quantity  of  raw  sugar  as  will 
make  a  pound  of  refined  sugar  and  the  duty  imposed  upon  the  refined  sugar 
when  imported. 

NO   BOUNTY   TO   THE   SUGAB  TBUST. 

Mr.  DOCKERY.  BUT  DISCARDING  ALL  TECHNICAL  TERMS  AND 
COMING  RIGHT  DOWN  TO  "  BED  ROCK,"  THIS  BILL  GIVES  TO  THE 
SUGAR  TRUST  A  CERTAIN  BOUNTY 

Mr.  DINGLEY.     IT  GIVES  TO  NO  SUGAR  TRUST  ANY  BOUNTY. 

Mr.  DOCKERY.  WELL,  IT  GIVES  THEM  A  CERTAIN  MEASURE  OF 
"  PROTECTION." 

Mr.  DINGLEY.  IT  GIVES  TO  THE  REFINING  INDUS'l  HY  OF  THIS 
COUNTRY  A  PROTECTION  THAT  IS  40  PER  CENT.  LESS  THAN  TH  AT 
GIVEN  BY  THE  WILSON  BILL  OF  1894.  (Applause  on  the  Republican 
side.) 

Mr.  MOODY.  I  wish  to  ask  the  gentleman  from  Maine  what  has  become 
of  Senate  amendment  850.  on  page  225.  providing  for  an  additional  duty  whore 
an  export  bounty  is  paid  by  a  foreign  country? 


Mr.  DINGl.EY.  A  general  provision  at  the  close  of  the  bill  covers  that 
n.aitor. 

Mr.  MOODY.  There  is  nothing  in  the  bill,  so  far  as  I  can  see,  which 
indicates  whether  that  provision  has  been  retained  or  not. 

Mr.  DINGLEY.  It  was  struck  out  in  the  Senate  and  a  general  counter- 
vaillug-duty  provision  put  in  at  the  close  of  the  bill,  obviating  the  necessity 
for  the  other  provision. 

Mr.  MOODY.  But  nothing  in  this  printed  bill  indicates  whether  that 
general  provision  of  the  Senate  has  been  retained  or  not. 

Mr.  DINGLEY.  The  way  to  ascertain  that  is  to  find  the  prqvision  as 
agreed  to  in  conference  in  the  reciprocity  section  of  the  bill. 

Mr.  MOODY.  There  is  nothing  to  indicate  what  action  has  been  taken 
by  the  conference. 

Mr.  DINGLEY.  If  the  gentleman  will  look  at  the  beginning  of  the  bill, 
he  will  notice  the  explanation  of  these  various  marks;  and  when  he  comes 
to  examine  further,  I  think  he  will  see  that  the  House  recedes  from  its  dis- 
agreement to  that  provision  and  agrees  to  the  general  provision  of  the  Senate 
relating  to  countervailing  duties  where  there,  is  a  bounty  on  exportation, 
thus  practically  accomplishing  what  was  accomplished  by  the  House  amend- 
ment. 

THE  INCREASE  IN  DUTIES. 

Mr.  Speaker,  I  desire  to  call  attention  to  the  nature  and  extent  of  the  in- 
crease in  the  rates  of  duty  in  the  proposed  tariff.  The  largest  increase  has 
been  made  in  the  duty  on  sugar,  partly  for  revenue  and  partly  for  the  pui- 
pose  of  encouraging  the  production  of  our  own  sugar.  It  is  this  increa^;? 
which  raises  the  average  equivalent  ad  valorem  apparently  above  that  of 
the  tariff  of  1890,  in  which  sugar  was  free.  The  changes  which  have  been 
ri:ade  in  the  bill  in  conference  reduce  the  average  equivalent  ad  valorem, 
estimated  on  the  basis  of  the  values  of  1893,  to  about  50  per  cent.,  including 
the  duty  on  sugar.  Excluding  sugar,  the  average  equivalent  ad  valorem,  on 
the  basis  of  the  values  of  1893,  does  not  exceed  48  per  cent,  against  49V2 
per  cent,  under  the  tariff  of  1890  and  40  per  cent,  under  the  tariff  of  1894.  But 
the  difference  between  the  40  per  cent,  of  the  present  tariff  and  the  48  per 
cent,  (excluding  sugar)  proposed,  properly  distributed  on  protective  lines,  is 
the  difference  between  life  and  death. 

We  have  heard  much  reckless  denunciation  of  the  proposed  tariff  as  "tho 
highest  ever  known,"  but,  as  a  matter  of  fact,  the  average  ad  valorem  of  the 
tariff  of  1824  was  50V^  per  cent.,  and  61%  per  cent,  in  1830,  48^^  per  cent,  in 
18G7,  and  this,  too,  before  undervaluation  became  a  science. 
PROTECTIVE  DUTIES  AND  REVENUE. 

Mr.  Speaker,  before  considering  the  second  object  had  in  view  in  fram- 
ing the  proposed  tariff  measure — that  of  encouragement  to  our  domestic  in- 
dustries— I  desire  to  correct  an  impression  which  exists  In  some  minds  that 
a  tariff  constructed  on  protective  lines  is  antagonistic  to  '•evpuue. 

It  would  be  a  sufficient  answer  to  such  a  conteni^-  '  >  p'Mut  to  the  'act 
that  all  our  revenue  tariffs  since  1861  had  been  grea>.t;  .evenue  producers 
than  any  tariffs  for  revenue  only  ever  put  into  law  in  this  country.  T!  e 
tariff  of  1890,  notwithstanding  it  surrendeied  from  fifty  to  sixty  millions  of 


16 

revenue  by  placing  sugar  on  the  free  list,  yielded  nearly  one  hundred  and 
seventy-seven  and  one-half  millions  of  revenue  from  customs  in  the  fiscal 
year  beginning  July  1,  1891;  two  hundred  and  three  and  one-third  millions 
in  the  fiscal  year  beginning  July  1,  1892,  and  would  have  undoubtedly  yielded 
two  hundred  and  twenty  millions  revenue  in  the  fiscal  year  beginning  July  1, 
1893,  if  it  had  not  been  for  the  result  of  the  November  elections  of  1892, 
which  proclaimed  the  overthrow  of  our  protective  policy  and  disarranged  our 
industries  and  impaired  the  consuming  power  of  our  people,  and  thus  cut 
down  revenue,  while  the  present  tariff,  heralded  as  a  revenue  tariff,  with  40 
per  cent.,  duty  on  sugar,  yielded  only  one  hundred  and  fifty-two  millions  in 
the  fiscal  year  ended  June  30,  1895,  and  would  not  have  yielded  in  the  fiscal 
year  just  ended  over  one  hundred  and  forty  millions  if  it  had  not  been  for 
anticipatory  iUiportations  to  avoid  the  new  duties. 

THEOIIIES  vs.  EXPERIENCE. 

To  oue  who  regards  theories  more  conclusive  than  experience,  it  might 
seem  as  if  duties  on  imports  which  can  be  produced  or  made  here  without 
laiUjal  disadvantage  equal  to  the  difference  of  cost  of  production  or  manu- 
factuie  heie  and  abroad,  with  the  necessary  result  of  encouraging  production 
here  of  such  articles  because  of  the  fact  that  such  duties  give  our  own  people 
an  equitable  chance  to  compete  for  our  own  markets,  would  cause  a  falling 
off  of  revenue. 

But  this  conclusion  omits  to  take  note  of  results  which  fiow  from  such 
encouragement  of  production  and  manufacture  here,  and  of  certain  habits 
of  a  portion  of  our  people:  First,  the  increased  purchasing  power  and  higher 
standard  of  living  of  the  masses  of  our  people,  in  consequence  of  which  they 
buy  and  consume  more  imported  luxuries,  or  articles  in  the  nature  of  luxuries, 
than  ever  before,  and,  second,  the  presence  of  a  large  number  of  well-to-do 
Citizens  who  regard  it  as  "the  thing"  to  use  imported  articles  of  foreign 
nifike,  especially  wearing  apparel,  and  who  are  willing  to  pay  high  duties 
on  them. 

A  striking  illustration  of  the  influence  of  these  two  facts  is  to  be  found 
in  a  comparison  of  the  revenue-producing  qualities  of  the  wool  and  woolens 
schedule  of  the  tariff  of  1890,  framed  on  protective  lines,  and  the  same  sched- 
ule of  the  tariff  of  1894,  framed  on  non-protective  or  supposed  revenue  lines. 
This  schedule  of  the  former  tariff  yielded  under  protection  in  the  fiscal  year 
1893  a  revenue  of  about  $44,500,000  on  an  importation  of  40,000,000  pounds  of 
clothing  wool  and  the  usual  quantity  of  carpet  wool,  together  with  $36,000,- 
000  worth  of  woolen  goods,  mainly  fine  goods,  consumed  by  the  well-to-do, 
and  in  the  f  seal  year  1896,  under  a  tariff  for  revenue,  yielded  only  $23,000,- 
000  revenue  nder  an  increased  importation  of  127,000,000  pounds  of  clothing 
wool  and  tht  usual  quantity  of  carpet  wool,  together  with  nearly  $60,000,000 
of  woolen  goods. 

ANTI-PROTECTIVE  SCHEDULES  DIMINISH  REVENUES. 

In  other  words,  a  change  from  a  protective  to  an  anti-protective  schedule 
diminished  the  annual  revenue  of  the  Government  $21,000,000.  And  worse 
still,  it  took  away  from  our  farmers  the  opportunity  to  grow  at  least  80.000,000 
pounds  of  wool,  and  by  reducing  the  price  of  wool  10  cents  per  pound,  dimin- 
ished their  purchasing  power  at  least  $30,000,000  annually,  which  diminution 


17 

of  purchasing  power  on  their  part  was  felt  by  every  class  of  our  ciflzens. 

And  besides  this,  it  shut  down  nearly  all  the  woolen  machinery  in  this  coun- 
try and  sent  into  the  streets  many  thousands  of  operatives,  who  were  obliged 
to  cut  down  their  purchases  of  the  products  of  the  farm,  the  loom,  and 
the  shop. 

The  fact  is  that  revenue  from  duties  on  imports  rises  and  falls  with  the 
consuming  power  or  prosperity  of  the  masses  of  the  people,  and  it  is  for  this 
reason  that  a  protective  tariff  so  fi  amed  as  to  encourage  domestic  production 
and  manufacture,  and  consequently  so  as  to  increase  the  earning  and  con- 
suming power  of  the  masses,  always  affords  the  largest  revenue,  because  it 
encourages  a  higher  standard  of  living  and  a  larger  consumption  of  im- 
ported luxuries  or  articles  of  voluntary  use,  from  which  the  revenue  under  a 
protective  tariff  is  largely  derived. 

INCREASED  REVENUE  FROM  LUXURIES. 

Mr.  Speaker,  I  desire  to  call  special  attention  to  the  fact  that  at  least 
thirty  millions  of  the  additional  revenue  which  the  proposed  tariff  bill  will 
yield 'after  the  effect  of  anticipatory  importations  has  been  overcome  will 
come  from  the  restoration  in  the  main  of  the  duties  of  the  McKinley  tariff 
on  imported  luxuries  or  articles  in  the  nature  of  luxuries,  duties  which  were 
unwisely  reduced  by  the  tariff  of  1894  in  the  wild  crusade  of  our  free-trade 
friends  against  what  they  denounced  as  tariff  taxation  of  the  masses. 

Some  of  the  items  which  go  to  make  up  the  thirty-five  or  forty  millions 
of  revenue  from  luxuries  thrown  away  by  the  tariff  of  1894  and  restored  by 
the  pending  tariff  bill  are  as  follows: 

On  liquors    |1,000  000 

On  Habana  cigars  and  wrapper  tobacco 1,000,000 

On  silk,  linen,  and  cotton  laces  and  embroideries 3,000,000 

On  silks  and  silk  plushes  and  velvets 3,000,000 

On  kid  gloves  and  jewelry 3,250,000 

On  ostrich  feathers,  downs,  artificial  flowers,  etc 1,275,000 

On  trimmings  of  beads,  glass,  etc 400,000 

On  braids  and  plaits  of  straw,  etc 400.000 

On  plate  glass  and  chinaware 890,000 

On  paintings  and  statuary 1,000,000 

On  personal  effects  (mainly  luxuries)  of  American  tour- 
ists returning  from  Europe 10,000,000 

TWENTY-FIVE    MILLIONS   SAVED   ON   LUXURIES. 

HERB  ARE  OVER  $25,000,000  REVENUE  FROM  LUXURIES  THROWN 
AWAY  BY  THE  SO-CALLED  "REVENUE  TARIFF"  OP  1894  AND  RE- 
STORED BY  THE  PENDIxNG  BILL. 

If  the  object  of  our  so-called  tariff-reform  friends  in  throwing  away  this 
revenue— as  gentlemen  on  the  other  side  declared— was  to  remove  the  bur- 
dens of  the  masses— assuming,  as  our  friends  assert,  that  a  duty  is  always 
added  to  the  price— what  rejoicing  there  must  have  been  among  the  toiling 
people  when  three  millions  of  burden  was  removed  from  them  by  a  reduction 
of  the  duty  on  laces  and  embroideries!  And  what  hallelujahs  of  praise  must 
have  gone  up  when  a  burden  of  three  and  a  quarter  millions  was  lifted  from 
their  bills  for  kid  gloves. 


18 

No  wonder  gentlemen  on  the  other  side  grow  red  in  the  face  in  their 
bursts  of  indignation  at  the  proposition  embodied  in  this  bill  to  save  $25,- 
000,000  revenue  by  placing  higher  duties  on  these  luxuries,  and  thus  render  it 
no  longer  necessary  to  issue  and  sell  interest-bearing  bonds  to  meet  the  ex- 
penditures of  Government  in  time  of  peace. 

But  these  are  by  no  means  the  only  imported  luxuries  or  articles  of  volun- 
tary use  (on  which  statesmen  have  heretofore  thought  it  wise  to  impose  the 
heaviest  duties)  on  which  duties  were  reduced  and  revenue  thrown  away  by 
the  tariff  of  1894,  and  which  this  bill  restores. 

WOOLENS  FOR  THE  WELL-TO-DO. 

It  will  be  observed  that  of  the  $36,000,000  woolen  goods  imported  In  1893 
under  the  act  of  1890,  on  which  a  revenue  of  about  $34,000,000  was  paid  into 
the  Treasury,  more  than  three-fourths  were  composed  of  fine  woolens  used 
bj'  the  well-to-do,  and  especially  by  that  class  of  onr  people  who  buy  foreign 
goods  because  of  the  impression  that  it  is  more  fashionable  to  do  this,  and 
who  are  willing  to  pay  for  the  gratification  of  their  "fad."  Unquestionably 
three-fourths  of  the  twelve  millions  of  revenue  on  woolen  goods  surrendered 
by  the  act  of  1894  and  restored  by  this  bill  came  from  the  well-to-do." 

Then,  undoubtedly,  three-fourths  of  the  three  millions  revenue  on  cottons 
surrendered  by  the  tariff  of  1894  came  from  fine  goods,  which  were  in  the 
nature  of  luxuries.  And  the  same  remark  niaj-  be  made  of  many  other 
schedules. 

Unquestionably  between  thirty-five  and  forty  millions  of  revenue  from 
articles  in  the  nature  of  luxuries  were  thrown  away  by  the  tariff  of  1894. 
Tho  proposed  tariff  is  framed  to  recover  this  revenue. 

PROTECTION  AND  EXPORT  TRADE. 

Mr.  Speaker,  I  desire  in  passing  to  briefly  notice  the  claim,  which  is 
being  studiously  pressed,  that  the  present  tariff  has  increased  our  exports 
of  manufactured  goods.  .  It  is  true  that  our  exports  of  manufactured  articles 
have  been  increased — largely,  however,  in  such  articles  as  mineral  oils  and 
specialties,  in  which  export  tariff  legislation  bears  no  part;  but  to  whatever 
extent  there  has  been  an  increase  of  exports  of  ordinary  manufactures,  it  Is 
due  to  the  fact  that  our  own  consumption  has  so  far  fallen  off  as  to  force 
manufacturers  to  sell  wherever  they  could  for  less  than  cost,  a  result  which 
eronhasises  our  distress  rather  than  illustrates  our  prosperity. 

IT  WAS  THE  BOAST  OF  THE  FRAMERS  OF  THE  TARIFF  OF  1894 
THAT  IT  WOULD  AT  ONCE  LARGELY  INCREASE  OUR  EXPORTS  OF 
WOOLEN  GOODS  BY  PLACING  THE  FARMERS'  WOOL  ON  THE  FREE 
LIST  AND  THUS  GIVING  OUR  MANUFACTURERS  FREE  WOOL.  ^ET 
THERE  HAS  BEEN  NO  INCREASE  OF  OUR  EXPORTS  OF  WOOLEN 
GOODS,  BUT  SUCH  A  DESTRUCTION  OF  THE  PURCHASING  POWER 
OF  OUR  FARMERS  THAT  OUR  WOOLEN  MANUFACTURERS  HA"\n^ 
SEEN  THE  HOME  DEMAND  FOR  THEIR  GOODS  LARGELY  DECLINE, 
AND  FOREIGN  WOOL  MANUFACTURERS  HAVE  BEEN  ABLE  TO  TAKE 
POSSESSION  OF  OUR  MARKETS  TO  AN  EXTENT  NEVER  BEFORE 
KNOWN. 

Experience  has  shown  that  our  foreign  trade  is  largest  under  the  pro- 
tective policy,  for  the  reason  that  our  imports  and  consumption  of  luxuries! 


1» 

and  of  such  other  goods  as  we  do  not  make  rise  with  the  prosperity  of  our 
people,  and  our  ability  to  compete  in  foreign  markets  is  increased  as  Ameri- 
can inventive  genius  is  stimulated  by  a  brisk  demand  for  products  in  our 
domestic  markets. 

THE  PROTECTIVE  POLICY. 

Mr.  Speaker,  the  title  of  the  tariff  bill  under  consideration  sets  forth  the 
two  ends  which  have  been  steadily  kept  in  view:  "To  provide  revenue  for 
the  Government  and  to  encourage  the  industries  of  the  United  States."  It 
is  noteworthy  that  the  preamble  of  the  first  tariff  bill  under  the  Constitution, 
flamed  by  Madison  and  approved  by  Washington— a  bill  passed  on  the  4th 
of  July,  1789,  a  day  sacred  to  every  American  patriot— declared  that  that 
tariff  bill  was  "for  the  support  of  Government,  for  the  discharge  of  debts  of 
the  United  States,  and  for  the  protection  and  encouragement  of  manu- 
facturers." 

The  proposed  tariff  bill  has  been  framed  not  only  to  secure  adequate 
revenue,  but  also  on  protective  lines  with  a  view  of  encouraging  American 
industries. 

I  do  not  propose  at  this  time  to  enter  into  any  elaborate  argument  to 
demonstrate  the  wisdom  of  the  protective  policy  in  tariff  legislation.  The 
almost  uninterrupted  prosperity  experienced  by  this  country  under  the  pro- 
tective policy  from  1861  to  1893 — a  prosperity  unexampled  from  1879,  when 
our  currency  was  placed  on  a  sound  basis,  up  to  the  close  of  1892,  when  a 
majority  of  our  people,  misled  by  the  assaults  and  glittering  promises  of 
free-trade  Democracy,  declared  for  the  overthrow  of  protection,  contrasted 
with  the  sad  experience  of  the  country  duriiig  the  past  four  years  under  first 
anticipated  and  then  partially  realized  free  trade  or  tariff  for  revenue  only, 
is  a  more  potent  and  convincing  argument  in  favor  of  a  return  to  the  pro- 
tective policy  than  anything  I  can  say  here. 

ENLARGED  OPPORTUNITIES  FOR  LABOR. 
The  object  of  the  protective  policy  is  to  enlarge  the  opportunities  for 
labor  and  to  maintain  a  high  standard  of  wages,  and  its  yokefellow,  a  high 
standard  of  living  for  the  masses.  It  rests  on  the  assumption  that  that  coun- 
try is  the  most  prosperous  in  which  the  standards  of  wages  and  of  living 
are  the  highest.  It  assumes  that  the  standard  of  living  or  purchasing  <i}owei" 
of  the  masses,  which  creates  the  demand  for  products  and  sets  in  motion  the 
intricate  machinery  of  production  and  distribution  in  modern  civilized  society, 
is  dependent  on  the  opportunities  to  use  their  labor  at  good  wages,  and  that 
these  opportunities  widen  and  wages  rise  as  diversified  domestic  industries 
multiply  and  the  production  of  whatever  we, want  which  can  be  made  or  pro- 
duced here  without  natural  disadvantage  goes  on  at  home  rather  than  abroad. 
An  economic  policy  which  tends  to  destroy  home  industries  in  which  no 
more  labor  is  required  for  production  here  than  abroad,  or  to  reduce  wages 
under  the  plea  that  the  products  of  such  industries  can  be  purchased  at  a 
lower  price  abroad  simply  because  our  labor  is  paid  higher  wages,  is  de- 
structive to  prosperity,  for  the  reason  that  nothing  is  cheap  which  deprives 
our  own  people  of  opportunities  for  employment  of  their  labor  anil  reduces 
the  wages  paid  to  labor. 


20 

CAUSE  OF  HARD  TIMES  IN  1893  AND  '94. 

What  took  place  in  1893  and  1894  in  consequence  first  of  anticipated  and 
subsequently  partially  realized  tariff  reductions?  First,  every  industry  began 
to  shorten  sail  and  stop  machinery,  and  then  to  reduce  wages.  Second,  the 
workingmen,  discharged  or  reduced  in  wages,  began  to  buy  and  consume  less 
of  the  products  of  the  farm,  the  shop,  and  the  mills.  And  third,  the  falling 
off  of  Consumption  resulted  in  gorged  markets  and  unremunerative  prices 
under  the  inevitable  law  that  prices  fall  when  there  are  two  sellers  to  one 
buyer,  producing,  with  other  causes,  that  dislocated  condition  of  production, 
distribution,  and  consumption  which  has  continued  nearly  four  years,  and 
which  is  denominated  industrial  and  business  depression,  or  "hard  times." 
We  have  had  the  free  trader's  paiadise  of  "cheap"  goods,  but  the  cheapness 
has  been  secured  at  a  fearful  cost.  I  venture  to  say  that,  notwithstanding 
the  apparently  cheap  prices  of  the  past  four  years,  the  masses  of  this  country 
have  not  for  many  years  paid  so  much  in  labor — with  which  all  products  are 
ultimately  bought — as  they  have  paid  during  this  period. 

A  FREE   TRADE  KINDERGARTEN. 

Our  people  have  been  attending  a  free-trade  kindergarten,  in  which  we 
have  learned  lessons  that  will  not  be  forgotten  for  some  time.  The  tuition 
has  come  high,  but  the  experience  will  make  it  difficult  for  gentlemen  on  the 
other  side  to  again  mislead  voters  by  assaults  on  protective  duties  as  "rob- 
bery" or  as  the  "levying  of  new  burdens,"  when  their  object  is  simply  to  place 
competition  here  on  the  basis  of  our  high  wages  rather  than  on  the  basis 
of  the  low  wages  of  Europe. 

The  end  aimed  at  in  the  protective  policy  is  not  the  benefit  of  the  pro- 
ducer or  the  manufacturer  as  such,  for  as  such  either  is  as  well  off  under  free 
trade  with  European  wages  as  under  protection  with  American  wages,  barring 
the  advantages  which  flows  from  the  increased  market  caused  by  the  high 
purchasing  power  of  the  masses.  The  object  in  view,  I  repeat,  is  to  enlarge 
the  opportunities  of  labor  through  the  diversification  and  growth  of  domestic 
industries,  to  elevate  the  standard  of  wages  and-  the  standard  of  living,  and 
thus  promote  the  prosperity  of  all  classes. 

Itow,  Mr.  Speaker,  the  majority  of  the  committee  who  have  framed  this 
proposed  tariff  bill  believe  that  any  economic  measure  whose  effect  is  to 
transfer  to  Europe  or  other  countries  the  making  of  articles  which  can  be 
produced  here  without  natural  disadvantage  can  never  produce  anything  but 
ruin  to  any  country.  (Loud  applause.)  We  believe  that  when  the  pro- 
tective principle  is  applied  of  imposing  duties  equivalent  to  the  difference  of 
the  cost  of  production  and  distribution  arising  from  our  higher  wages  of 
labor,  as  proposed  in  the  pending  bill,  and  thus  increased  opportunities  are 
offered  to  American  labor,  giving  the  masses  a  purchasing  power  which  they 
have  lost  under  the  conditions  of  the  past  four  years — a  purchasing  power 
which  enables  them  to  buy  more  of  the  farmer,  more  of  the  merchant,  more 
of  the  manufacturer,  and  more  of  every  producer  in  the  land — then  confidence 
will  begin  to  return,  prices  will  begin  to  rise  to  a  paying  point,  and  pros- 
perity begin  to  set  in  upon  the  land.     (Loud  applause  on  the  Republican  side.) 


(No.  lo.) 


Government  Obligations. 


We  are  unalterably  opposed  to  every  measure  calculated  to  debase  our 
currency  or  impair  the  credit  of  our  country.— Itepublican  NalioiuU 
riatform  of  1896. 

Contracts  based  on  a  loo^cent  dollar  should  be  held  as  valid  and  bind- 
ing; as  contracts  based  on  a  la-inch  foot  or  a  3 -foot  yard. 


SPEECH  OF 


Hon.  EDWARD  L.  HAMILTON, 

OF  MICHIGAN. 


IN  THE  HOUSE  OF  REPRESENTATIVES, 
Monday,  January  31,  1898. 


SPEECH 

OF 


Hon.  EDWARD  L.  HAMILTON. 


The  House  having  under  consideration  concurrent  resolution  No.  22, 
declaring  that  all  bonds  of  the  United  States  issued  or  authorized  to  be 
issued  under  certain  acts  of  Congress  are  payable,  principal  and  interest, 
at  the  option  of  the  Government  of  the  United  States,  in  silver  dollars 
of  the  coinage  of  the  United  States  containing  412^  grains  each  of 
standard  silver,  and  that  to  restore  to  its  coinage  such  silver  coins  as  a 
legal  tender  in  payment  of  said  bonds,  principal  and  interest,  is  not 
in  violation  of  the  public  faith  nor  in  derogation  of  the  rights  of  the 
public  creditor  — 

Mr.  HAMILTON  said: 

Mr.  Speaker:  This  resolution  proposes  that  bonds  issued  or  au- 
thorized to  be  issued  under  the  acts  enumerate<l  in  the  preamble  thereto 
are  payable,  principal  and  interest,  at  the  option  of  this  Government 
in  silver  dollars  containing  412^  grains  each  of  standard  silver. 

The  resolution  further  proposes  that  to  restore  to  coinage — meaning 
now  unlimited  coinage — such  silver  coins  as  a  legal  tender  in  payment 
of  said  bonds  is  not  in  violation  of  public  faith  nor  in  derogation  of  the 
rights  of  the  public  creditor. 

This  resolution  stands  on  the  defensive  from  the  outset. 

It  hastens  to  deny  that  the  payment  of  the  public  debt  in  silver  dollars 
coined  without  limit  at  the  ratio  of  16  to  1  is  dishonest. 

It  proposes  in  effect  that  sovereign  Government  shall  take  silver,  now 
standing  temporarily  at  the  ratio  of  about  33  to  1  with  gold,  coin  it 
into  dollars  without  limit  arbitrarily  at  the  ratio  of  16  to  1,  and  pay 
its  debts  with  the  money  which  it  has  so  created. 

(«) 


The  question  resolves  itself  into  one  of  honesty  and  good  faith,  and 
was  passed  upon  at  the  last  election. 

The  Republican  party,  in  its  platform,  pronounced  against  every 
measure  calculated  to  debase  our  currency  or  impair  the  credit  of  our 
country,  and  therefore  against  the  free  coinage  of  silver  except  by 
international  agreement  with  the  leading  commercial  nations  of  the 
world. 

It  declared  in  favor  of  maintaining  "our  silver  and  paper  currency  at 
parity  with  gold,"  and  the  people  of  the  United  States  indorsed  the 
Republican  platform. 

The  American  people  are  sensitive  to  any  imputation  of  public  or 
private  disihonor  and  they  pronounced  against  legalizing  the  payment 
of  honest  obligations  in  depreciated  dollars  and  thereby  violating  the 
pledge  of  the  nation  to  maintain  the  parity  between  gold  and  silver. 

They  pronounced  against  the  clipping  of  coin  by  legislative  enact- 
ment. 

They  pronounced  in  favor  of  a  silver  dollar  worth  a  gold  dollar. 

In  favor  of  a  silver  dollar  that  will  not  shrink  when  exposed  to  salt 
water  while  crossing  the  ocean. 

In  favor  of  a  dollar  worth  a  dollar  the  whole  world  round,  and  not  a 
dollar  fluctuating  from  day  to  day  in  the  markets  of  the  world. 

In  favor  of  gold  and  silver,  and  paper  at  parity  with  them — plenty 
of  gold,  plenty  of  silver,  and  plenty  of  business  to  keep  them  both  in  use 
and  circulation. 

They  pronounced  in  favor  of  a  dollar  true  to  name  and  true  to  the 
value  stamped  upon  it. 

COINAGE  AND  ITS  OBJECT. 

What  is  the  object  of  coining  money?  Simply  to  certify  to  the  world 
the  weight  and  fineness  of  the  piece. 

Coinage  was  first  resorted  to  by  individuals  for  business  convenience, 
and  then  monopolized  by  governments. 

It  has  been  said  that  if  money  were  not  coined  every  business  man 
would  have  to  carry  a  pair  of  scales  and  be  a  chemist. 


The  commercial  world  does  carry  scales  and  does  understand  chem- 
istry, and  the  gentlemen  on  the  other  side  carry  scales,  but  they  carry 
them  over  their  eyes. 

Every  coin  "rxmg  on  the  counters  of  this  world"  must  pass  either 
upon  its  own  intrinsic  worth  or  upon  the  credit  of  the  nation  which 
stamps  it,  and  when  the  commercial  world  distrusts  a  nation's  power 
to  keep  its  money,  whether  paper  or  metallic,  up  to  the  value  stamped 
upon  its  face,  then  such  money  must  pass  upon  its  own  merit,  sink  to 
its  actual  value,  or  seesaw  up  and  down  from  day  to  day,  subject  to 
the  caprice  of  public  confidence. 

So  the  commercial  world  weighs  the  Mexican  silver  dollar,  which 
contains  about  6^  more  grains  than  our  own,  and  says,  "This  dollar 
is  worth  the  silver  it  contains.  For  it  we  will  give  you  about  50  cents:" 
and  thus  it  weighs  the  money  of  all  the  world. 

This  nation  has  kept  its  silver  dollars  at  parity  with  gold,  (1)  because 
behind  every  silver  dollar  has  stood  the  nation's  pledge  to  keep  and 
maintain  silver  and  gold  at  parity;  (2)  because  by  coinage  on  Govern- 
ment account  it  has  wisely  limited  the  output  of  silver  dollars  within 
its  powers  of  redemption;  and  (3)  because  it  receives  them  in  payment 
of  tariff  and  taxes. 

The  difference  in  the  slumping  capacity  of  silver  and  paper  is  defined 
by  the  difference  in  the  material  composing  them. 

A  paper  dollar  may  decline  from  its  face  down  to  nothing,  because 
the  paper  is  worth  nothing,  while  a  silver  dollar  may  decline  from  its 
face  down  to  the  value  of  the  silver  composing  it. 

MONEY  AND  FBICES. 

TTie  qualitative  theory  of  money,  elementary  and  old  as  political 
economy,  was  paraded  in  the  last  campaign  like  a  new  discovery.  It 
was  truthfully  urged  that  more  money  makes  hig'her  prices;  but  the 
twin  truth  that  it  is  only  money  in  circulation  that  affects  prices  w&a  not 
dwelt  upon. 

In  tbe  language  of  John  Stuart  Mill,  '^Whatever  may  be  the  quantity 


of  money  in  the  country,  only  that  part  of  it  will  affect  prices  which 
goes  into  the  market  of  commodities  and  is  there  actually  exchanged 
against  goods."  Substitutes  for  money,  even,  credit  used  in  making 
purchases,  have  the  same  effect  on  prices  as  money  itself.  This  explains 
why  prices  are  substantially  the  same  in  France  and  England  notwith- 
standing France  has  twice  the  volume  of  ooin  money  that  England  has. 

Money  driven  to  cover  by  panic  and  hidden  away  in  fear  builds  up  no 
enterprise  and  furnishes  no  employment. 

Confidence  makes  business,  and  business  maies  prosperity. 

With  confidence  fled  and  business  dead,  it  was  said  that  what  the 
country  needed  was  more  money,  as  if  by  some  sort  of  legislative  leger- 
demain our  population  could  be  enriched  without  effort. 

The  way  to  have  "more  money,"  it  was  said,  was  to  dig  down  the 
mountains  and  coin  them  into  silver  dollars  at  the  arbitrary  ratio  of 
16  to  1. 

But  why  coin  at  16  to  1?  Why  not  coin  at  8  to  1  or  1  to  1,  or  why 
not  stamp  paper,  "cheap  in  material,  worked  by  steam,  and  signed  by 
machinery?" 

If  the  touch  of  the  Government  stamp  creates  value,  why  waste  silver? 

Why  not  coin  pig-iron  dollars,  as  they  did  in  the  days  of  old  Ly- 
curgus? 

If  the  touch  of  the  Government  stamp  can  make  value,  the  phi- 
losopher's stone  is  outdone,  mankind  can  be  rich  without  work,  rich 
without  thought,  and  rich  without  value  received;  and  carking  care 
and  the  struggle  and  grind  of  poverty  will  be  no  more. 

Let  us  proceed  to  stamp  and  do  nothing  but  stamp.. 

"FREE  AND  UNLIMITED  COINAGK" 

It  is  said  that  a  free,  open  mint  would  create  an  unlimited  demand 
and  pull  the  price  of  silver  up  to  parity  with  gold;  that  an  increased 
output  of  silver  would  increase  its  value,  and  somewhere  in  dim  perspec- 
tive silver  and  gold  would  meet  at  the  ratio  of  16  to  1. 

What  is  a  free,  open  mint?    Simply  a  place  run  by  the  Government 


where  bullion  would  go  into  the  hopper  and  come  out  coin,  and  the 
coin  would  not  belong  to  you  nor  to  me  nor  to  the  Government,  but 
would  belong  to  the  man  who  brought  the  bullion  to  the  mint,  and 
we  could  not  get  a  dollar  of  it  except  for  value  received. 

If  this  Government  should  offer  to  buy  wheat  at  $5  a  bushel,  and 
be  able  to  purchase  all  wheat  offered  at  that  price,  wheat  would  be 
worth  $5  a  bushel.  If  this  Government  should  offer  to  buy  whitefish 
at  $5  apiece,  and  be  able  to  purchase  all  whitefish  offered  at  that  price, 
every  whitefish  in  the  lakes  would  be  worth  $o  so  long  as  the  market 
was  open.  But  if  this  Government  should  simply  say  to  the  owners 
of  whitefish,  or  wheat,  or  silver,  "Gentlemen,  we  have  exceptional  facili- 
ties for  counting;  bring  on  your  commodities  and  we  will  cotfht,  weigh, 
label,  and  stamp  them,"  it  is  not  to  be  supposed  that  a  rise  in  value 
would  follow.  Eliminating  the  legal-tender  propositio'n  by  which  silver 
would  have  a  temporarily  enhanced  value  for  payment  of  past-due  debts, 
a  free  open  mint  would  give  it  no  value. 

If  a  free  open  mint  would  create  an  unlimited  demand  and  pull  the 
price  of  silver  up  to  parity  with  gold,  then  a  free  open  thras'hing 
machine  would  raise  the  price  of  wheat  and  a  free  open  sawmill  would 
raise  the  price  of  basswood  up  to  that  of  rosewood  or  mahogany. 

CHARACTER  OF  MONEY. 

It  is  laid  down  as  an  axiom  that  more  money  makes  higher  prices, 
and  it  is  true.  But  the  money  must  be  in  use  and  circulation,  and  the 
quality  of  the  price  depends  upon  the  quality  of  the  money  in  which 
it  is  measured  and  the  character  of  the  people  among  whom  it  circu- 
lates. 

More  than  $450,000,000  of  paper  money  was  issued  by  the  colonies 
and  the  Continental  Congress,  which  shrunk  to  nothing  in  the  hands 
of  the  last  possessor. 

Confederate  money  grew  more  worthless  as  time  brought  Appomattox 
in  sight. 

The  greenback  fluctuated  to  as  low  as  38  cents  on  the  dollar,  and 
was  restored  to  parity  with  gold  by  the  power  of  this  Government  to 
redeem  it. 


7 

Measured  in  greenbacks,  Confederate  or  continental  money,  prices 
were  high,  but  the  seller  was  not  enriched  thereby.  He  became  poorer 
the  longer  he  held  the  price.  That  is  the  price  which  depreciation 
exacts.  Depreciation  levies  another  tax,  also,  when  the  merchant  takes 
toll  for  uncertainty  and  charges  a  percentage  for  possible  loss. 

It  is  true  that  money  circulated  in  those  days,  because  every  man 
sought  to  unload  on  his  neighbor. 

CLASH  OF  DEMOCRATIC  THEORIES 

It  was  once  said  by  Mr.  Cleveland,  then  at  the  head  of  an  undivided 
Democratic  party,  that  the  "price  is  increased  to  the  consumer  by  pre- 
cisely the  amount  of  the  duty  exacted."  This  argument  that  "the 
tariff  is  a  tax,"  and  that  prices  are  too  high  by  reason  thereof,  has 
(lone  Democratic  duty  down  to  date  and  has  followed  prices  down  to 
bed  rock,  when  the  tariff  is  under  discussion. 

No  self-respecting  Democrat  ever  alludes  to  tariff  duty  as  duty;  he 
always  speaks  of  it  as  a  tax,  with  the  peculiar  and  indescribable  intona- 
tion and  inflection,  the  result  of  long  habit,  which  has  a  tendency  to 
prejudice  the  casual  thinker  and  lead  him  to  prefer  to  raise  money  to 
pay  expenses  by  running  in  debt  instead  of  charging  the  foreigner  a 
license  to  sell  in  our  markets. 

13ut  when  money  is  under  discussion  the  gentlemen  on  the  other 
side  plant  themselves  on  a  new  premise,  viz,  that  prices  are  too  low. 

Their  argument  runs  thus:    Prices  are  too  high,  therefore  let  us  have 

free  trade.     Prices  are  too  low,  therefore  let  us  have  free  silver  at 

16  to  1. 

PRICES  AND  PROTECTION. 

The  demonetization  of  silver  by  the  leading  nations  of  the  world 
may  have  had  its  effect  on  prices;  but  the  w^orld  over,  man's  inven- 
tion, the  cunning  of  machinery,  division  of  labor,  and  increased  supply 
are  the  visible,  tangible,  undebatable  causes  of  lower  prices.  And  in 
this  country  the  loom,  the  spinning  frame,  the  spinning  jenny,  and 
the  cotton  gin,  the  transition  from  sickle  to  harvester,  from  flail  to 


thrashing  machine,  from  treadmill  to  steam  engine,  the  enlarged  nst 
of  steam  and  electricity  have  reduced  prices,  whitened  the  fields  of 
the  South  with  cotton,  covered  the  Western  plains  with  golden  grain, 
planted  cities,  laid  rails  for  traffic,  and  strung  wires  for  communica- 
tion. 

Still  another  cause  has  contributed  to  lower  prices.  Protective  duties 
have  increased  the  number  of  factories,  which,  by  competition  among 
themselves,  have  reduced  prices.  The  more  factories  the  more  labor 
employed;  the  more  labor  employed  the  more'  consumers;  the  more 
consumers  the  bigger  the  town;  the  bigger  the  town  the  Jjetter  the 
market  for  the  farmer,  and  the  better  the  market  for  the  farmer  the 
more  valuable  the  farm. 

SILVER  AND   WHEAT. 

The  country  had  an  opportunity  to  note  the  logic  of  partisan  oratory 
in  the  last  campaign. 

Ignoring  the  law  of  supply  and  demand; 

Ignoring  invention; 

Ignoring  the  fact  that  the  extension  of  Western  railroads  in  the 
United  States  and  Canada  had  carried  seeds  to  unsown  lands;  that  vast 
wheat  fields  had  sprung  up  along  the  way;  that  mighty  harvests  had 
year  after  year  been  brought  away  to  glut  the  world's  supply,  and 
that  the  same  is  true  of  Eussia,  India,  and  Argentina;  it  was  said  that 
wheat  and  silver  had  been  going  downhill,  side  by  side,  joint  victims 
of  the  same  inexorable  law. 

■  But  in  the  heat  of  the  last  campaign,  when  this  argument  had  been 
blazoned  in  pamphlets  and  blared  on  rostrums,  wheat  went  up  and  has 
continued  to  go  up  and  silver  went  down  and  has  continued  to  go  down. 

Facts  are  eternal;  words  are  words. 

BATIO. 

The  ratio  of  16  to  1  has  been  talked  of  as  if  fixed  by  Omnipotent 
edict;  as  if  at  the  dawn  of  creation  silver  and  gold  were  yoked  in  the 
ratio  of  16  to  1  in  the  moon's  eclipse  with  weird  incantation,  while  the 
"lakes  of  bitumen  rose  boilingly  higher  and  the  slumbering  earthquake 


lay  pillowed  on  fire;"  and  since  t^at  time  no  other  ratio  is  genuine! 
no  other  ratio  is  blown  in  the  metal;  every  other  ratio  is  a  hoodoo! 

Beyond  the  plains  that  rise  toward  the  setting  sun  stand  the 
mountains  veined  and  seamed  with  wealth  untold;  hut  when  the 
mountains  were  lifted  up  and  metals  were  fused  in  volcanic  fires,  no 
power  decreed  that  silver  and  gold  should  vein  the  rocks  at  16  to  1. 

And  when  men  followed  the  overland  trail,  and  railroads  climbed 
the  western  grade  and  tunneled  out  toward  the  Pacific,  and  the  sound 
of  the  miner's  pick  rang  among  the  solitudes  of  the  mountains,  no 
power  prescribed  that  silver  and  gold  should  be  found  at  the  ratio  of 
16  to  1. 

And  when  silver  and  gold  were  found,  no  power  prescribed  that  they 
shoiiid  be  used  at  the  ratio  of  16  to  1. 

And  when  silver  and  gold  are  used,  no  mere  paper  statute  of  any 
single  nation,  which  may  happen  to  decorate  or  mar  the  map  of  the 
world  for  a  few  hundred  years,  can  compel  the  two  metals  to  go  yoked 
in  an  arbitrary  mint  ratio  which  is  not  the  commercial  ratio. 

Silver  and  gold  have  been  the  money  of  all  time,  but  the  ratio  of 
their  usage  and  coinage  has  changed  witli  the  changing  years. 

As  well  try  to  keep  the  deck  of  a  ship  level  in  a  rolling  sea  as  to  try 
to  make  one  ratio  stand  through  time  and  change. 

Congrci^s  can  do  much. 

A  united  Republican  majority  is  strong. 

It  can  roll  away  the  clouds  of  commercial  gloom. 

It  can  make  the  horizon  blaze  with  the  sunrise  of  returning  pros- 
perity and  the  wind  vocal  with  the  clatter  and  song  of  industry. 

I  repeat,  Congress  is  powerful,  but  it  is  not  in  the  jjower  of  Congress 
to  make  a  half  equal  to  the  whole. 

It  can  not  change  the  multiplication  table. 

It  can  not  fix  the  value  of  commodities. 

It  can  not  fix  by  law  the  relative  value  of  silver  and  gold. 

It  is  no  more  in  the  power  of  Congress  to  make  this  nation  richer  by 
calling  50  cents  a  dollar  than  it  is  in  the  power  of  Congress  to  make  the 
this  nation  bigger  by  calling  half  a  mile  a  mile. 

It  is  no  more  in  the  power  of  Congress  to  make  me  richer  by  calling 


10 

50  cents  in  my  pocket  a  dollar  than  it  is  in  the  power  of  Congress  to 
make  me  13  feet  tall  by  calling  6  inches  a  foot. 

It  is  no  more  in  the  power  of  Congress  to  make  the  farmer  richer  by 
calling  50  cents  a  dollar  than  it  is  in  the  power  of  Congress  to  make  the 
farmer's  farm  bigger  by  calling  half  an  acre  an  acre. 

Neither  the  Congress  of  1793,  nor  1834,  nor  1853;  neither  Wash- 
ington, nor  Hamilton,  nor  Jefferson,  nor  Jackson,  nor  any  Administra- 
tion in  the  United  States;  nor  princes,  potentates,  or  powers  outsidt 
of  the  United  States,  have  ever  been  able  singly  and  alone  to  make  a 
mint  ratio  control  a  commercial  ratio.  Yet  now,  in  the  closing  years  of 
the  nineteenth  century,  ignoring  history,  encouraged  only  by  conjecture, 
comes  a  party  proposing  to  repeal  the  Gresham  law  by  the  unlimited 
coinage  of  silver  and  gold  at  the  ratio  of  16  to  1,  and  make  silver  so 
coined  legal  tender  in  payment  of  all  debts,  public  and  private,  "without 
the  aid  or  consent  of  any  other  nation." 

It  was  discovered  long  ago,  first  by  Oresme,  counselor  to  Charles  V, 
next  by  Copernicus,  next  by  Thomas  Gresham,  master  of  the  mint  under 
Queen  Elizabeth,  that  with  unlimited  coinage  of  both  metals  at  a  fixed 
ratio  the  metal  worth  more  at  the  mint  than  elsewhere  will  go  to  the 
mint  and  be  coined,  and  the  metal  worth  less  at  the  mint  than  elsewhere 
will  stay  away. 

THE  GRESHAM  LAW  IN  OUR  HISTORY. 

If  gold  or  silver  is  worth  more  uncoined  than  coined,  it  will  not  be 
coined,  or,  if  already  coined,  it  will  not  circulate. 

Our  own  history  has  demonstrated  this. 

Congress  has  the  constitutional  power  to  "coin  money,  regulate  the 
value  thereof,  and  of  foreign  coin." 

Pursuant  to  this  power  the  coinage  act  of  1793  was  passed. 

The  coinage  ratio  was  then  fixed  by  Hamilton,  Secretary  of  the  Treas- 
ury, and  agreed  to  by  Jefferson,  then  Secretary  of  State,  not  in  reliance 
upon  any  supposed  power  in  Congress  to  keep  and  maintain  the  two 
metals  in  circulation  by  law,  but  by  looking  abroad  and  ascertaining 


11 

the  existing  commercial  ratio  and  seeking  to  make  the  mint  ratio  con- 
form thereto. 

And  there  were  "struck  and  coined"  at  the  mint  coins  of  silver  and 
gold  at  the  ratio  of  15  to  1.  But  a  mistake  had  been  made.  The  legal 
ratio  did  not  conform  to  the  commercial  ratio. 

Silver  was  overvalued  at  the  mint,  and  so  came  to  the  mint,  but  gold 
remained  away. 

Nor  did  our  silver  dollars  remain  long  in  circulation,  but  went  to 
Mexico  rnd  the  West  Indies  in  exchange  for  Spanish  dollars,  which 
were  about  three  grains  heavier  than  our  own. 

Their  dollars  were  brought  to  our  mint  amd  recoined  for  re-exchange, 
and  this  endless  chain  of  coinage  and  exchange  went  on  without  com- 
mercial benefit  to  us  till  180(5,  when  the  further  coinage  of  the  silver 
dollar  was  stopped  by  order  of  Thomas  Jefferson,  then  President. 

By  the  acts  of  1834  and  1837  Congress  provided  for  the  coinage  of 
silver  and  gold  at  the  ratio  of  16  to  1,  but  again  the  legal  ratio  did  not 
conform  to  the  commercial  ratio.  This  time  gold  was  overvalued  at 
the  mint  and  so  went  to  the  mint  to  be  coined,  while  silver  went  abroad, 
because  16  ounces  of  silver  were  worth  more  than  an  ounce  of  gold. 

Up  to  1853  silver  subsidiary  coin,  viz,  half-dimes,  dimes,  quarters, 
and  halves,  had  been  coined  at  the  ratio  of  16  to  1;  but  persons  without 
regard  for  the  Goddess  of  Liberty  and  the  American  eagle  had  melted 
them  down  and  sold  them  for  bullion,  because  16  ounces  of  silver  were 
worth  more  than  1  ounce  of  gold,  and  so  worth  more  uncoined  than 
coined.  Therefore  in  1853  the  coinage  of  subsidiary  coins  for  private 
account  was  stopped.  Subsidiary  coins  were  denied  legal  tender  beyond 
$5  and  the  bullion  composing  them  was  cut  down  more  than  6  per 
cent. 

From  1834  down  to  the  Bland-Allison  Act  of  1878  the  country  was 
on  a  gold  basis,  except  during  the  period  of  our  civil  war,  when  we 
were  on  a  greenback  basis,  and  cheap  paper  drove  both  silver  and  gold 
out  of  circulation  and  went  down  at  times  to  38  cents  on  a  dollar. 

Because  silver  drove  gold  out  under  the  law  of  1792,  because  gold 
drove  silver  out  under  the  laws  of  1834  and  1837,  a-nd  because  cheap 
paper  drove  both  silver  and  gold  out,  we  can  not  hope  to  be  exempt 


12 

from  the  operation  of  the  same  law  now.  Instead  of  bimetallism  we 
would  have  silver  monometallism,  and  instead  of  more  money,  less 
money,  until  the  void  left  by  our  departed  gold  could  be  filled  by  de- 
preciated silver — time  enough  for  ruin,  havoc,  and  disaster. 

PRODUCTION  AND  COINAGE  OF   SILVER. 

From  the  founding  of  our  mint  in  1792  down  to  1873  there  were 
coined  about  eight  millions  of  silver  dollars  and  about  one  hundred 
and  thirtv-six  millions  of  fractional  and  subsidiary  coin. 

Under  the  law  of  1873  about  30,000,000  trade  dollars  were  coined. 

Under  the  Bland-Allison  Act  of  1878  not  less  than  two  million  nor 
more  than  four  million  dollars'  worth  of  silver  was  purchased  monthly 
and  coined  until  $378,106,793  were  coined,  but  silver  went  down  from 
92  to  74  cents  on  the  dollar. 

The  Sherman  law  of  1890  provided  for  the  purchase  at  the  market 
price  and  coinage  of  4,500,000  ounces  of  silver  per  month,  or  so  much 
thereof  as  should  be  offered.  Under  this  law  168,674,082.53  fine  ounces 
of  silver  were  purchased  at  a  cost  of  $155,931,002,  for  which  Treasury 
notes  were  issued.  The  coinage  of  this  bullion  from  1890  to  January 
31,  1898,  is  73,822,857  silver  dollars,  and  there  remains  now  uncoined 
in  the  Treasury  (January  31,  1898)  silver  bullion  which  cost  $101,- 
379,158,  for  which  certificates  are  outstanding.  In  addition  to  coinage 
under  the  Bland-Allison  and  Sherman  laws,  the  coinage  of  subsidiary 
silver  has  gone  on,  so  that  from  February  12,  1873,  to  January  31,  1898, 
$93,961,181.05  in  subsidiary  silver  have  also  been  added  to  our  circula- 
tion. And  yet,  notwithstanding  this  tremendous  use  of  silver  in  the 
United  States  since  1873,  the  price  of  silver  has  continued  to  go  down. 
The  total  coinage  of  silver  in  the  United  States  from  1792  to  February 
12,  1873,  was  $143,813,598.70,  while  the  total  coinage  from  February 
12,  1873,  to  January-  31,  1898,  was  $581,916,755.05. 

In  1896  the  Director  of  the  Mint  reported  that  the  v^alue  of  all  the 
silver  money  in  all  the  world  in  1873  was  estimated  at  $1,816,505,657, 
while  in  1894  it  had  grown  to  $4,000,000,000,  a  gain  of  over  two  billions 
one  hundred  millions  in  twenty-one  years. 


13 

There  had  been  added  to  the  full  legal  tender  of  the  world,  then,  in 
twenty-one  years,  from  1873  to  1894,  an  amount  of  silver  equal  to  the 
accumulation  of  all  the  nations  in  all  the  ages  down  to  that  time. 

In  1860  we  had  a  per  capita  circulation  9f  $13.85;  in  1873  we  had 
a  per  capita  circulation  of  $18.19;  in  1896  we  had  a  per  capita  circu- 
lation of  $21.10,  and  in  1897  we  had  a  per  capita  circulation  of  $22.49. 

If  the  qualitative  theory  of  money  can  he  made  to  apply  to  a  single 
nation  and  prices  rise,  fall,  or  stand  according  to  the  amount  of  money 
in  circulation  within  its  houuddvies,  then  prices  should  have  been  sus- 
tained within  the  United  States. 

PRICES  GOVERNED  BY  INTIIRNATIONAL  MONEY  SUPPLY. 

The  per  capita  money  of  the  nations  of  the  world  varies.  It  is  absurd 
to  suppose  that  the  circulation  of  money  will  be  restrained  by  national 
boundary  lines. 

No  matter  how  many  dollars  per  capita  a  single  nation  may  have, 
no  matter  how  many  dollars  in  which  to  measure  its  property,  real  and 
personal,  its  money  will  run  beyond  its  borders  and  seek  the  general 
level,  and  the  price  of  commodities  in  any  single  nation  will  have  relation 
to  the  general  international  supply  of  money,  and  not  alone  to  the 
money  of  that  single  nation. 

In  these  days  when  factories  touch  ends  the  world  over,  and  freight 
by  sea  is  less  than  freight  by  land,  and  distance  is  annihilated,  no  single 
nation  can  by  mere  coinage  legislation  raise  prices  within  its  borders 
measured  in  money  of  international  circulation. 

It  is  true  that  a  nation  may  raise  the  price  of  its  products  locally 
by  putting  cheap  money  into  circulation — for  illustration,  continental. 
Confederate,  or  greenback  money — because  the  cheaper  the  money  the 
less  it  takes  in  commodities  to  buy  a  dollar;  but  no  man  can  be  com- 
pelled to  part  with  his  property  except  for  value  received,  and  he  may 
name  the  price  and  the  money  in  which  it  shall  be  paid. 

It  is  true  also  that  a  nation  may  perpetrate  upon  its  citizens  the 
wrong  of  legal-tender  laws  compelling  them  to  receive  in  payment  of 
pafit-du©  d^bts  money  worth  less  than  the  money  loaned,  and  govern- 


14 

ments  may  repudiate  their  debts  or  pay  them  in  depreciated  money. 
But  history  denounces  kings  who  have  borrowed  good  money  of  their 
subjects  and  repaid  them  in  bad,  and  when  government  "of  the  people, 
by  the  people"  goes  into  the  business  of  paying  good  debts  in  cheap 
money,  it  means  cheating  "of  the  people  by  the  people." 

Contracts  based  on  a  100-cent  dollar  should  be  held  as  valid  and 
binding  as  contracts  based  on  a  12-inch  foot  or  a  3-foot  yard. 

To  say  in  swelling  terms  that  this  or  any  other  nation,  single  handed 
and  alone,  without  the  aid  or  consent  of  any  other  nation,  can  main- 
tain silver  and  gold  in  circulation,  yoked  in  the  arbitrary  ratio  of 
16  to  1,  when  the  commercial  ratio  is  something  else  is  mere  conjecture, 
even  if  it  be  said  so  eloquently  that  phonographs  are  set  rasping  the 
saying  the  country  over. 

Hence  the  Republican  platform  of  1896  says:  "We  are  unalterably 
opposed  to  every  measure  calculated  to  debase  our  currency  or  impair 
the  credit  of  our  country;  we  are  therefore  opposed  to  the  free  coinage 
of  silver  except  by  international  agreement  with  the  leading  commercial 
nations  of  the  world." 

SILVER  MONOMETALLISM. 

Incident  to  silver  monometallism  is  partial  repudiation,  by  which — - 

1.  The  laborer  would  be  paid  for  a  full  day's  work  in  clipped  dollars — 
in  dollars  big  in  his  pocket,  but  small  at  the  grocery. 

2.  The  pensioner  who  fought  for  the  stability  of  our  Government 
would  be  paid  in  unstable  money. 

3.  Life-insurance  policies  would  be  cashed  to  widows  and  orphans  in 
dollars  worth  less  than  the  face  of  the  policy. 

4.  Savings  deposits  and  loan  investments  slowly  paid  to  maturity 
would  be  repaid  in  clipped  dollars,  worth  less  than  the  dollars  invested. 

5.  Guardians,  executors,  and  administrators  would  file  their  final  ac- 
counts and  be  discharged  on  payment  of  less  than  the  trust  estate. 

Incident  to  silver  monometallism,  too,  is  the  question  whether  this 
nation,  which  stands  now  in  the  forefront  of  the  progressive  civilization 
of  the  world,  shall  begin  to  pattern  its  finances  after  those  of  Mexico^ 


15 

whether  we  shall  slump  to  a  semicivilized  money  standard  or  still  main- 
tain our  proud  place  among  the  nations  of  the  world,  with  coin  the 
image  and  superscription  of  which  tell  no  lie,  and  with  flag  not  lowered 
to  commercial  half-mafit. 

Around  the  banner  of  delusion  raised  at  Chicago  demagogues  re- 
cruited an  army  of  ignorance  and  vice,  with  plunder  more  than  sug- 
gested. 

Very  few  of  the  rank  and  file  of  Democracy,  perhaps,  aimed  to  be 
dishonest.  The  great  mass  of  the  people,  of  whatever  party,  advocate 
their  honest  convictions  and  strive  by  their  political  acts  to  bring  benefit 
to  themselves  and  to  their  country.  But  the  leaders  of  the  free-silver 
crusade  of  1896  openly  avowed  their  purpose  of  repudiation,  clamorously 
appealing  to  the  ignorant  and  to  the  vicious,  seeking  also  by  subtle 
suggestion  to  enlist  the  sympathy  and  cooperation  of  conscientious 
farmers  and  workingmen  in  the  contest  for  a  debased  currency. 

The  successful  business  man  was  denounced  as  a  criminal  autocrat 
with  whom  the  laboring  man  ought  to  get  even,  forgetting  that  poverty 
can  give  no  employment  to  poverty;  that  the  closed  factory  furnishes 
no  work,  and  the  man  out  of  work  spends  no  money  at  the  store. 

Class  was  arrayed  against  class. 

Firebrands  were  scattered  from  rear  car  platforms. 

The  doctrine  of  discontent  was  disseminated. 

The  policy  of  enriching  all  by  the  ruin  of  each  was  broached. 

With  such  arguments  it  was  sought  to  elect  a  President  of  all  the 
people. 

THE  PUBLIC  WEALTH. 


Wliat  is  the  public  wealth  of  America?  It  is  not  what  the  Govern- 
ment owns,  because  the  Government  owns  but  little  beyond  a  few  forts 
and  arsenals,  some  public  buildings  and  lands,  and  the  graves  of  its 
soldiers. 

The  public  wealth  of  America  is  made  up  of  the  fortunes  of  its 
citizens. 


16 

It  increases  as  population  increases;  it  fluctuates  as  people  plant  and 
build  and  traffic  more  or  less,  as  new  industries  and  new  inventions  give 
new  value  to  lands,  mines,  and  forests,  as  the  seasons  bring  harvests  or 
famines,  as  mutual  confidence  and  common  prosperity  extend  credit 
from  man  to  man,  as  money  goes  freely  from  hand  to  hand  or  hides  for 
fear  of  disaster. 

When  threats  and  fears  of  spoliation  have  caused  money  to  go  into 
hiding  instead  of  investment,  and  public  confidence  is  shaken,  then 
public  wealth  is  reduced  beyond  calculation. 

Nations  may  coin  money  of  silver  and  gold,  but  the  best  mint  is  the 
mint  of  public  confidence;  and  confidence  is  founded  on  order,  and 
order  is  not  built  upon  an  earthquake. 


(No.  n.) 


The  Gold  Standard 


ITS  EFFECT  ON 


MONEY  and  WAGES 


SPEECH  OF 


Hon.  EBENEZER  J.  HILL, 

OF  CONNECTICUT, 

IN  THE  HOUSE  OF  REPRESENTATIVES, 
Tuesday,  April  12,  1898. 


I  have  shown — 

FIRST*    That  the  actual  volume  of  money  has  enormously  increased 
under  the  gold  standard. 

SECOND.    That  this  increase  has  exceeded  the  increase  of  population. 

THIRD.    That  gold  alone  is  now  nearly  threefold  more  abundant  com- 
pared with  other  money  than  gold  and  silver  together  were  in  1873. 

FOURTH.    That  gold  alone  is  as  capable  of  carrying  th«  credit  system 
of  the  country  as  gold  and  silver  were  in  i860. 


THE  GOLD  STANDARD— ITS  EFFECT  ON  MONEY  AND  WAGES. 
A  STATEMENT  OF  FACTS. 


SPEECH  OF 

Hon.  EBENEZER  J.  HILL, 

OF  CONNECTICUT. 

IN  THE  HOUSE  OF  REPRESENTATIVES, 
Tuesday,  April  12,  1898. 


Mr.  HILL  said: 

The  oldest  financial  transaction  of  which  I  can  find  any  account  is  re- 
corded in  the  sixteenth  verse  of  the  twenty-third  chapter  of  Genesis,  where 
we  are  told  that,  nearly  four  thousand  years  ago,  Abraham,  in  buying  a 
burial  place,  weighed  to  Ephron  in  payment  "400  shekels  of  silver,  current 
money  with  the  merchant." 

Abraham  was  a  stranger  and  a  sojourner  in  that  land  and  paid  his  debt 
in  a  money  of  commerce,  an  actual  weight  of  silver  bullion,  for  it  was  a 
thousand  years  before  governments  had  learned  to  coin  money  or  fix  by 
law^  ratios  between  silver  and  gold. 

But  the  Bible  throws  a  curious  side  light  upon  this  transaction,  showing 
that  human  nature  was  the  same  then  as  novs^,  and  that  Abraham  did  as 
all  mankind  have  since  done,  took  advantage  of  the  customs  of  the  country 
and  paid  out  of  his  poorest  metal  money,  for  the  second  verse  of  the  thir- 
teenth chapter  tells  us  that  Abraham  was  very  rich,  in  cattle,  silver,  and 
gold. 

GOLD  THE  NATTJBAL  STANDARD. 

We  have  no  knowledge  as  to  the  relative  value  of  the  two  metals  at  that 
time,  but  the  position  of  the  word  "gold"  in  the  sentence  clearly  demon- 
strates its  greater  importance,  and  from  that  day  to  this,  no  matter  what 
the  coinage  of  any  nation  has  prescribed  or  what  change  in  values  may 
have  been  attemi^ted  by  legislation,  the  world's  standard  of  value  has  been 
gold,  and  gold  has  been  the  "1,"  the  unit  of  value  by  which  all  ratios  have 
been  fixed. 

Not  only  that,  but  to  this  day,  whatever  the  law  of  any  country  may 
declare  to  be  legal  tender,  the  money  of  commerce,  the  money  current 
with  the  merchant,  the  money  used  in  adjustment  of  international  balances, 
is  weighed  as  Abraham  weighed  his,  and  quantity  and  quality  alone  meas- 
ure values,  without  reference  to  any  marks  that  may  be  stamped  upon  it. 

A  while  ago  I  saw  in  the  Bank  of  England  the  judgment  day  of  the  coin- 
age of  the  world. 

A  half  dozen  automatic  scales  were  receiving  the  coins  in  hoppers,  and, 
sliding  down  long  grooves,  each  coin  rested  a  moment  in  a  balance. 

If  light  weight,  the  arm  lifted  and  tossed  the  coin  to  the  right. 

If  full  weight,  the  arm  dropped  and  the  coin  was  thrown  to  the  left. 

It  was  justice  working  automatically. 

The  intrinsic  worth  of  each  piece  preserved  it  as  it  was  or  sent  it  to  the 
melting  pot. 

(3) 


Passing  down  into  the  Taults  of  that  famous  institution,  I  saw  in  nne 
room  was  $20,000,000  of  American  coin  that  had  been  run  into  gold  bars. 

They  looked  like  copper  ingots. 

Each  one  was  tagged  with  the  assayer's  certificate  of  weight  and  fineness 
and  was  ready  for  sale,  as  iron  or  coal  or  copper  would  be,  by  weight. 

Last  year  alone  more  than  thirteen  millions  of  foreign  gold  coin  ^^ere 
received  by  the  mint  of  the  United  States,  and,  without  reference  to  the 
form  and  stamp  upon  them,  were  melted  into  bars  and  valued  by  their 
weight  and  fineness  only. 

Through  all  recorded  time  the  intelligent  choi(?e  of  all  mankind  has  made 
pure  gold  the  final  measure  of  values,  even  though  its  tools  of  exchange 
may  have  been,  fromt  time  to  time,  cattle,  com,  metal,  paper,  or  any  other 
of  the  many  things  used  as  currency  which  temporary  convenience  may 
have  suggested. 

I  do  not  believe  that  any  people  ever  advanced  far  enough  in  the  path  of 
civilizationto  become  familiar  with  metallic  money  but  that,  consciously 
or  unconsciously,  its  coinage  or  token  system  bore  some  recognized  relation 
to  gold  as  the  standard  of  value. 

There  certainly  is  no  nation  in  the  world  to-day  which  does  not  thus 
recognize  it. 

^^Tiy  this  is  so  I  need  not  stop  to  explain,  for  natural  selection  needs  no 
argument  to  justify  itself. 

It  is  enough  that  it  is  so  and  that  every  advocate  of  silver  or  any  other 
standard  acknowledges  it  when  he  urges  the  use  of  anything  else  as  money 
on  any  other  basis  than  1  to  1,  or  an  exact  equality  with  gold. 


ARTIFICIAL  STANDARDS. 

Starting,  then,  with  the  assumption  that  the  universal  measure  of  value 
is  and  always  has  been  gold,  the  question  naturally  arises,  Why  should 
anything  else  be  used  as  money,  and  why  should  an  artificial  standard  be 
set  up? 

And  here  the  second  attribute  of  money  appears  as  a  tool  of  exchange. 

As  a  standard  measure  of  value  quality  alone  is  required,  and  a  unit  of 
its  kind  would  sufiice  for  all  the  world,  but  as  a  tool  of  exchange  a  con- 
venient number  of  units  are  needed,  and,  strange  as  it  maj'  seem,  the 
ruder  and  less  developed  society  is,  the  greater  the  number  required  to 
effect  exchanges. 

Hence  it  is  that,  as  the  nations  of  the  earth  have  one  after  another 
passed  from  barbarism  to  civilization,  they  have  left  behind  them  the 
wampxmi,  the  cattle,  and  the  slaves;  then  the  iron,  the  lead,  and  the 
copper,  and  reached  out  for  the  precious  metals,  silver  and  gold,  as  better 
fitting  their  changed  conditions,  always  striving  for  the  best  that  was 
attainable. 

During  the  past  hundred  years  this  process  of  evolution  has  gone  for- 
ward more  rapidly  than  ever  before  until  practically  the  whole  world,  and 
actually  all  of  the  commercial  world  except  Mexico,  has  suspended  the  free 
and  unlimited  coinage  of  silver  as  standard  money,  and  either  adopted 
the  single  gold  standard,  or  a  limited  bimetallism  such  as  obtains  in  the 
United  States,  where  silver  is  being  coined  on  Government  account,  but 
limited  in  quantity  to  our  ability  to  maintain  its  parity  with  gold. 

The  reason  for  this  great  and  sweeping  change  in  the  monetary  systems 
of  the  world  is  neither  mysterious  nor  strange. 

In  my  opinion  it  is  simply  the  enormous  increase  in  the  production  of 
gold,  the  universally  accepted  measure  of  values,  so  that  it  not  only  prom- 
ises to  be  but  actually  is  now  in  the  possession  of  mankind  in  sufficient 
quantity  to  become  under  the  more  highly  organized  commercial  methods 
the  best  tool  of  exchange  of  which  the  world  now  has  any  knowledge. 

Think  for  a  moment  what  this  increa««  haa  beea. 


5 
INCREASE   OF   GOLD   SITPPLY. 

During  the  three  hundred  and  fifty  j'ears  from  the  discovery  of  America 
to  the  opening  of  the  California  mines  in  1850  the  entire  world's  product 
of  gold  had  been  but  little  more  than  three  billions  of  dollars'  worth 
($?),  121,830,000),  or  an  annual  average  of  eight  and  three-quarter  millioi  3 
(8,728,200). 

It  was  only  just  before  the  beginning  of  this  period  that  the  art  of 
printing  had  been  discovered,  and  during  the  greater  part  of  these  three 
and  a  holf  centuries  the  steam  engine,  the  steamship,  the  railroad,  the 
telegraph,  and  the  telephone  were  unknown. 

None  of  the  means  of  communication  which  now  bring  nations  and 
individuals  the  world  over  into  daily  and  hourly  touch  with  each  other  in 
their  business  relations  were  even  thought  of. 

Checks,  notes,  drafts,  and  bills  of  exchange,  by  which  90  per  cent  of 
the  commercial  transactions  of  the  nineteenth  century  have  been  carried 
on,  had  no  existence  then,  and  the  modern  system  of  banking  had  not  been 
developed. 

Goldsmiths  and  jewelers  were  the  bankers  and  brokers  of  that  time,  and 
Ihe  actual  gold  and  silver  passed  from  n^ian  to  man  and  nation  to  nation 
ir  the  settlement  of  all  transactions. 

During  the  saihe  period  the  world's  production  of  silver  was  a  little  over 
six  billions  of  dollars  ($6, 196, .504, 000),  or  an  annual  average  of  seventeen 
and  one-third  millions  each  year,  or  about  double  the  product  of  gold. 

P>oth  together  added  but  twenty-six  millions  per  j'ear  to  the  world's 
stock  of  money,  and  even  from  this  must  be  deducted  the  amount  used 
in  the  arts,  aiid  it  is  by  no  means  improbable  that  this  amount  was  greater 
in  jjroportion  to  the  population  than  now,  when  we  have  the  process  of 
electroplating  fully  developed. 

Is  it  not  easy  to  understand,  in  view  of  these  facts,  how  that  both  metals 
were  a  neco.ssity  as  money,  and  that  the  more  abundant  was  accepted  as  a 
measure  of  value  and  means  of  exchange? 

With  both  in  use  domestic  trade  was  largely  barter  and  international 
trade  was  giaeatly  hindered. 

CHANGE    TO    GOLD    STANDARD    BEGUN. 

Dut  the  gold  accumulation  of  the  centuries  gradually  forced  its  way  mio 
the  ohannels  of  trade,  and  in  1798  England  stopped  the  free  coinage  of 
silvei-.  and  in  1816,  in  the  face  of  a  sharp  decline  in  gold  production,  adopted 
the  .single  gold  standard,  and  declared  her  purpose  to  thereafter  build  up 
her  financial  system  \inder  it. 

For  forty  years  she  stood  alone,  but  with  the  best  tools  of  trade  in  her 
poss<'ssion,  she  could  afford  to  wait,  and  while  she  waited  she  became  the 
leader  of  commerce  and  the  financial  center  of  the  world. 

From  that  day  to  this  the  English  pound  sterling  has  known  no  geo- 
grni>hical  limit,  no  national  boundary  lines,  but  among  every  people  the 
world  around  has  silently  pursued  its  mission  of  adding  to  England's  wealth 
and   increasing  England's  power. 

But  in  1S50  something  happened  to  gold. 

Suddenly  from  the  rocks  and  hills  of  California  and  Australia  the  stores 
of  golden  treasure  were  poured  out,  and  in  a  single  bound  the  world's 
average  i)roduction  went  from  eight  to  one  hundred  and  twenty-seven 
millions  of  dollars,  and  in  the  forty-seven  years  since  the  aggregate  addi- 
tion to  the  world's  tools  of  exchange  in  gold  alone  has  been  $6,101,490,600, 
a?  against  three  billions  one  hundred  millions  in  the  entire  three  and  a  half 
centuries  preceding. 

Is  it  any  wonder  that  the  nations  of  the  earth  have  fallen  into  hue  and 
one  after  another,  discarding  tlie  costly  and  cumbrous  methods  of  the  past, 
with  a  worldwide  unanimity  have  chosen  gold  as  their  measure  of  value 
and  tool  of  exchange? 


To  me  the  wonder  is  that  in  these  closing  days  of  the  nineteenth  century 
a  great  political  party  in  this  progressive  Republic  should  stand  before  the 
people  upon  a  theory  rejected  and  thrown  aside  by  all  the  world  within  the 
memory  of  those  now  living  and,  ignoring  the  addition  of  over  three  bil- 
lions of  gold  to  the  world's  stock  since  1873,  should  bow  ask  us  to  go 
back  to  the  double  standard  and  the  unlimited  coinage  of  both  metals,  and 
thus  put  ourselves  at  the  mercy  of  other  nations  to  plunder  us  of  either  at 
their  pleasure. 

It  would  seem  as  though  the  frozen  sands  of  the  Klondike  and  the 
quartz  reefs  of  South  Africa  would  melt  with  indignation  at  such  a 
proposition. 

This  nation  will  go  forward,  not  backward,  in  the  path  of  progress,  and 
on  that  march  the  rightful  place  of  the  United  States  is  in  the  front  rank. 

THE  DOUBLE  STANDARD  WITH  FREE  COINAGE  IMPOSSIBLE. 

A  double  standard  with  free  coinage  of  both  metals  is  an  impossibility, 
but  the  enlarged  use  of  silver  as  the  willing  servant  of  gold  is  not  only 
possible,  but  is  even  demonstrated  as  an  established  fact. 

Through  all  recorded  time  its  value  has  decreased. 

History  tells  us  that  4  ounces  of  silver  were  once  the  equal  of  an  ounce 
of  gold. 

It  was  8  to  1  under  Julius  Caesar,  11  to  1  when  America  was  discovered, 
15  to  1  when  this  nation  began  its  coinage,  16  to  1  in  1837,  22  to  1  in 
1890,  and  40  to  1  in  September,  1897. 

Its  steady  course  has  been  downward,  unhindered  by  legislation,  influ- 
enced in  part  by  its  larger  production,  but  far  more  by  the  accumulating 
and  annually  increasing  supply  of  gold. 

The  anomaly  is  in  the  fact  that  the  lowest  price  is  concurrent  with  the 
largest  use,  for  since  1873  there  has  been  an  increase  in  the  silver  monetary 
stock  of  the  thirteen  principal  nations  of  the  world  of  $670,900,000,  and  the 
bulk  of  this  has  been  full  legal-tender  coinage. 

In  fact,  the  claim  that  silver  has  been  demonetized,  either  in  the  sense 
that  its  monetary  function  or  its  legal-tender  quality  has  been  taken  away, 
is  utterly  wrong,  for  this  is  true  of  only  a  total  of  $163,430,460  sold  by 
Germany,  Roumania,  and  Scandinavia,  and  probably  this  silver  was  re- 
coined  into  subsidiary  money. 

Whether  it  was  or  not,  is  of  no  consequence,  for  it  was  less  than  a  year's 
product,  and  the  aggregate  legal-tender  coinage  has  increased  as  shown. 

The  only  quality  that  it  has  lost  is  that  of  the  standard,  and  that  it  was 
never  fit  for  and  never  would  have  received  but  for  the  insufficient  supply 
of  gold. 

Neither  is  it  true,  as  claimed  by  some,  that  depriving  silver  of  its  function 
as  a  standard  has  materially  helped  to  reduce  its  value. 

********* 

No  metal  with  a  production  in  excess  of  requirement,  or  of  limited  produc- 
tion concurrently  with  another  better  fitted  for  monetary  purposes,  can 
have  one  particle  of  value  given  to  it  by  a  free  and  unlimited  coinage. 

Not  an  ounce  of  it  is  taken  from  the  world's  market. 

The  bullion  in  the  coin  and  the  ingot  will  be  precisely  the  same  in  price, 
and  the  one  adapted  to  and  available  for  the  same  uses  as  the  other. 

A  limited  coinage,  with  the  value  of  the  coin  maintained  at  parity  with 
gold  by  governmental  credit,  does  remove  that  exact  quantity  from  the  gen- 
eral stock,  and  in  proportion  to  such  decreased  su'pply  will  tend  to  increase 
the  market  price. 

All  experience  proves  that  fact,  and  the  Mexican  dollar  is  the  best  possible 
evidence  of  it  to-day. 


TWO    CLASSES    OP    FREE    SILVEB   ADVOCATES. 

Mr.  HILL.  I  fully  understand  that  there  are  two  classes  of  advocates  of 
the  free  and  unlimited  coinage  of  silver. 

One  class  believes,  and  believes  honestly,  that  by  an  iinlimited  demand 
working  upon  a  limited  supply,  additional  value  will  be  gfiven,  which  will 
bring  it  to  an  equality  with  gold. 

While  I  am  willing  to  concede  their  honesty  of  purpose,  I  must  totally 
disagree  with  their  conclusions. 

I  heard  once  of  a  man  who,  on  retiring  for  the  night,  found  the  blankets 
too  short  to  properly  cover  his  person,  with  the  result  that  he  suffered  all 
night  long  from  cold  feet. 

The  next  night,  with  the  enthusiasm  bom  of  a  new  idea,  he  cut  a  strip 
from  the  upper  end  of  the  blanket  and  pinned  it  to  the  lower  end  and  then 
retired  in  the  firm  belief  that  his  troubles  were  all  over. 

He  was  doubtless  honest,  but  had  poor  judgment. 

I  would  remind  these  gentlemen  who  would  legislate  value  into  silver  of 
the  old  conundrum  which  I  used  to  hear  when  I  was  a  boy:  "If  you  call 
a  dog's  tail  a  leg,  how  many  legs  would  a  dog  have?"  and,  to  save  them 
any  waste  of  gray  matter  in  guessing  it,  will  state  that  the  answer  was 
"Four;  for  calling  the  tail  a  leg  does  not  make  it  one." 

The  second  class  is  made  up  of  those  who  do  not  believe  that  silver 
can  acquire  added  value  from  legislation,  but  who  desire  free  coinage 
purely  as  an  inflation  scheme. 

As  an  illustration  of  that  class,  I  cite  the  last  Democratic  candidate  for 
the  Presidency,  who  some  time  ago,  in  a  speech  in  Brooklyn,  said:  "We 
do  not  want  to  change  the  ratio.  It  is  not  because  we  produce  silver  that 
we  want  16  to  1,  biit  because  we  own  property  and  owe  debts." 

It  is  further  illustrated  by  the  action  of  forty-two  United  States  Senators 
who,  when  a  short  time  ago  the  question  of  paying  the  Government  bonds 
in  silver  was  under  consideration,  voted  down  the  Nelson  amendment,  which 
declared  that — 

"It  is  the  duty  of  the  Government  of  the  United  States,  under  existing 
laws,  to  maintain  the  parity  of  its  gold  and  silver  money,  so  that  a  dollar 
of  the  one  metal  shall  for  all  monetary  purposes  always  be  the  equal  in 
value   to   a   dollar  of  the  other  metal." 

And  who  made  a  still  more  specific  declaration  of  their  views  and  pur- 
poses by  defeating  the  Caifery  amendment,  which  provided  that — 

"If  at  the  time  of  payment  of  the  principal  and  interest  on  the  bonds 
herein  mentioned  the  market  value  of  silver  is  not  on  a  par  with  gold  at 
the  ratio  of  16  to  1,  the  principal  of  said  bonds  shall  be  paid  in  gold  or 
silver  at  the  option  of  the  creditor." 

For  such  declarations  and  for  the  principle  or  lack  of  principle  on  which 
they  are  based  I  have  neither  sympathy  nor  respect,  nor  do  I  believe  that 
any  man  or  party  acting  in  accordance  therewith  will  ever  receive  the 
indorsement  of  the  honest  people  of  this  country.  [Applause  on  the  Re- 
publican side.] 

VOLUME  OF  MONEY  AND  PBICES. 

The  recent  manifestoes  issued  jointly  by  the  chairmen  of  the  Democratic, 
the  Populist,  and  the  Silver-mine  parties  declare  in  effect  that  the  adoption 
of  the  gold  standard  by  the  principal  nations  of  the  world  has  largely  re- 
duced the  volume  of  money,  and  that  as  a  result  prices  have  declined, 
development  has  been  checked,  and  wages  have  been  reduQ|d. 

As  an  unanswerable  argument  against  this,  I  submit  th"following  table 
showing  the  approximate  stock  of  gold,  silver,  and  uncovered  i^aper  money 
in  the  principal  countries  of  the  world  in  1873  and  in  1897,  with  the  changes 
between  these  dates: 


Approximate  slock  iff  gold,  tilver,  arid  uncovered  paper  money  in  the  principal  countries  of  the  world  in  1873 
and  1897  and  changes  between  those  dates,  expressed  in  millions. 

[Compiled  from  pages  40,  41,  and  42  of  the  Eeport  of  the  Director  «f  the  Mint  for  1897^ 


Gold. 

Silver. 

Uncovered  paper. 

Country. 

• 

1873. 

1897. 

Increase. 

1873. 

J  897. 

Increase. 

1873. 

1897. 

Increase. 

Great  Britain 

160 
450 
160.2 
149.1 
20 
25 
12 
35 
50 
4.1 
1.8 
7.6 
135 

584 
772 
654.5 
5S6.9 

96.9 

35 

21. !l 

nM 

132.1 
15.4 
10.6 
7.5 

696.3 

424 
322 
494.3 
437.8 

76.9 

10 
9.9 
143.n 

82.1 

11.3 
8.8 

•.1 
561.3 

95 
500 

3o;;.2 

18.6 

23 

15 

37.3 

40 
3 

7.S 
4.3 
1.6 
6.2 

121.7 
443.9 

2r.'.8 

74.2 

45.4 

57 

56.1 

6:.7 

7 

5.4 

4.9 

2 
634.5 

26.7 
*5fi.l 
•9.-;.4 
5.5  6 
22.4 
42 
18.8 
23.7 

4 

•2.1 

.6 

.4 

628.3 

69.3 

385.3 
90.8 

618.4 
87.8 
35.1 
15.3 

265.8 

112.1 

119.2 
123.8 
4f>7.2 
161 

72.5 

87.9 
177.6 

22.5 
6.4 

19 
3.8 
397 

52  3 

•266.1 

33 

•151.2 

Italy _: 

73.2 
3'i.4 

22.6 

Austria  Hungary.... 

•88.2 
22.5 

6.5 
6 

2.3 
749.4 

*.l 

13 

1.5 

*352.4 

ToUl 

1,209.8 

3,791.6 

2,581.8 

1,037.7 

1,728.6 

67(J.9 

2322.5 

1,7-0 

*  602.5 

Ket  Increase,  $2,950,200,000. 


I  would  especially  call  attention  to  the  footings,  which  show  that  these 
nations  in  1897  had  $2,581,800,000  of  gold  and  $670,900,000  of  silver  more  than 
they  had  in  1873,  while  the  uncovered  paper  money^the  demand  obliga- 
tions of  these  nations — shows  a  decrease  of  $602,500,000,  making  a  net  in- 
crease of  currency  in  twenty-three  years  of  $2,650,200,000. 

But  not  only  is  it  true  that  the  actual  monetary  stock  of  the  world  has 
been  largely  increased,  but  it  is  also  true  that  this  increase  has  outstripped 
the  increase  of  population. 

Take  as  an  example  our  own  country. 

In  1873  we  had  per  capita  $3.24  of  gold  as  against  $9.55  now,  0.15  of 
silver  as  against  $8.70  now,  and  $17.97  of  paper  as  against  $5.45  now,  making 
a  total  per  capita  of  all  forms  of  money  of  $21.36  in  1873  against  $23.70 
now. 

England  has  increased  her  per  caiiita  from  $9.90  to  $20.65,  Germany  from 
$13.59  to  $18.95,  Belgium  from  $14.44  to  $25.70,  Italy  from  $4.88  to  $9.69,  the 
Netherlands  from  $16,56  to  $23.65,  Sweden  from  $2.7^5  to  $6.90,  Denmark  from 
$10.05  to  $11.83,  Australasia  from  $20.38  to  $32.32,  and  Norway  from  $6.39 
to  $6.65,  while  Kussia  has  decreased  61  cents,  Austria  16  cents,  and  France 
$2.31. 

But  not  only  do  these  figures  shoAv  conclusively  that  there  has  been  no 
shrinkage  in  the  volume  of  money,  but  it  is  found  that  the  actual  increase 
far  exceeds  the  entire  world's  production  of  silver,  less  the  amount  used  in 
the  arts  since  1873. 

I  am  well  aware  that  in  response  to  this  showing  of  the  increase  of  the 
world's  volume  of  monej'  the  advocate  of  free  coinage  will  still  claim  that 
such  increase  is  not  in  what  he  calls  "money. of  final  redemption." 

While  I  deny  that  there  is  any  such  thing  as  a  particular  money  of  final 
redemption  in  our  system  where  we  have  four  kinds  of  legal  tender  with 
the  right  of  exchange  of  one  for  the  other  indiscriminately  under  the  parity 
clause  of  the  a^  of  1893,  yet  I  am  willing  to  concede  that  what  is  meant 
is  "standard"  ttwhey  and  will  test  this  claim  on  that  basis  only. 


•  Decrta.se. 


9 

In  1873,  under  the  double  standard,  the  United  States  had: 

[See  Mint  Report,  1897,  page  42.) 

Gold    $135,0l>C000 

Silver    6,150,000 

Total  specie  141,150,000 

Paper    749,445,610 

Taking  silver  and  g-old  together,  the  money  of  final  redemption  was  18.83 
per  cent  of  the  money  to  be  redeemed. 
In  1897  the  United  States  had: 

[See  Mint  Uoport,  1S97,  pnge  ?.7.] 
Gold    $696,300,000 

Silver    634,500,000 

Paper    731,772,151 

Silver  and  paper 1,366,272,151 

So  that  in  gold  alone  the'  money  of  final  redemption  is  now  50.96  per  cent 
of  the  money  to  be  redeemed. 

Mr.  SHAFEOTH.     You  count  silver  as  redemption  money? 

Mr.  HILL.  iS'o;  I  am  taking  your  view  of  the  case.  And  though  count- 
ing silver  and  paper  as  subject  to  redemption  in  standard  money,  yet  we 
are  nearly  three  times  as  well  prepared  for  this  as  we  were  in  1873,  with 
both  metals  in  use  for  that  purjiose. 

Again,  the  loans  and  discounts  of  State  banks  in  18G0  wore  $706,333,272.22; 
specie  held  (gold  and  silver),  $82,038,510.09. 

********** 

There  is  no  better  way  of  testing  this  question  of  business  requirements 
than  from  loans  and  discounts.  Loans  and  discounts  of  national  banks 
February  18,  1898,  were  $2,138,078,280.43;  gold  held,  $:i22,855,516.77.  So  tliat 
it  appears  that,  according  to  the  population  at  each  period,  the  gold  held 
by  national  banks  in  1898  was  $3.06  per  capita,  and  the  specie — gold  and 
silver — held  in  1860  was  $2.69  per  cajuta. 

Not  only  that,  but  where,  in  1860,  the  specie  holdings  of  banks  were  11.6 
per  cent  of  the  loans  and  discounts,  in  February,  1898,  notwithstanding  an 
enormous  expansion  of  the  credit  system  and  the  use  of  other  legal  tender 
as  bank  reserves,  the  gold  alone  was  10.42  per  cent,  of  the  loans  and 
di.scounts. 

I  have  shown — 

First.  That  the  actual  volume  of  money  has  enormously  increased  under 
the  gold  standard. 

Second.  That  this  increase  has  exceeded  the  increase  of  population. 

Third.  That  gold  alone,  or  the  money  of  ultimate  redemption,  now  is 
nearly  threefold  more  abundant  compared  with  other  money  than  in  1873. 

Fourth.  That  gold  alone  is  as  capable  now  of  carrying  the  credit  system 
of  the  country  as  gold  and  silver  were  in  1860. 

In  view  of  these  facts,  what  becomes  of  this  triplet  proposition  that  the 
shrinkage  in  the  volume  of  the  world's  money  has  ref  ''  i'cd  prices  and 
checked  development? 

The  truth  is,  and  it  is  coming  to  be  more  and  more  accepted,  that  it 
is  the  quality  rather  than  the  quantity  of  money  that  influences  prices, 
conditions  of  supply  and  demand  being  unchanged,  and  that  the  quantita- 
tive theory  ignores  lajjidity  of  circulation,  improved  facilities  of  exchange, 
and  the  modern  use  of  credit  instruments. 

BANK  CREDITS  IGNORED. 

Mr.  HILL.  I  am  quite  sure  that  in  considering  the  subject  of  the  volume 
of  money  our  free-silver  friends  forget  the  bank  credits  of  this  and  other 
countries,  which  amount  to  more  than  $16,000,000,000   ($16,051,137,349),  con- 


X 


10 

sisting  of  capital,  surplus,  circulation,  and  deposits  of  commercial  banks 
and  banks  of  issue  only,  all  savings  banks  being  excluded  both  here  and 
abroad. 

This  enormous  sum  is  to  all  intents  and  purposes  available  as  money  and 
performs  all  of  the  functions  of  a  tool  of  exchange. 

As  against  the  $23.70  per  capita  of  money  here,  there  is  a  banking  power 
of  $72.61;  in  Great  Britain,  $110.66;  Australasia,  $136;  Switzerland,  $86.71; 
Denmark,  $67.64;  Canada,  $57.10;  Sweden,  $46.95;  Straits  Settlements,  $39.60; 
Netherlands,  $19.22;  France,  $24.23;  Belgium,  $19.15;  Austria,  $13.68;  Ger- 
many, $8.94;  Italy,  $8.76;  Russia,  $6.33;  Mexico,  $3.88;  Turkey,  $1.12;  Japan, 
$0.88.  (Compiled  from  the  Eeport  of  the  Comptroller  of  the  Currency  for 
1897,  pages  594,  595,  596.) 

Add  the  deposits  of  savings  banks  to  the  rating  of  the  United  States  and 
it  will  carry  us  to  over  a  hundred  dollars  per  capita  ($102.52). 

This  is  a  factor  in  thfe  financial  problem  that  must  be  reckoned  with. 

Compared  with  the  volume  of  mone3%  it  exceeds  it  fourfold  here  and  five- 
fold in  Great  Britain. 

It  is  a  structure  built  up  from  the  bed  rock  of  confidence  in  a  fixed  and 
unchanging  unit  of  value — gold. 

Undermine  this,  cut  this  in  two  by  legislation  for  fiat  money,  and  "the 
subsequent  proceedings  will  interest  us  no  more,"  for  there  will  not  be 
enough  left  to  worry  over.     [Loud  applause  on  the  Republican  side.] 

THE  REPUBLICAN  PARTY  AND  THE  WAGE-EARNER. 

There  is  one  claim  in  this  recent  manifesto  which  I  confess  is  a  surprise 
to  me. 

For  the  past  three  years  we  have  been  told  again  and  again  that  in  order 
to  meet  the  competition  of  the  silver-standard  nations  we  must  adopt  the 
same  policy  and  pay  our  labor  in  depreciated  money,  and  the  rapidly  in- 
creasing dangers  of  Oriental  competition  have  been  sounded  in  our  ears  as 
something  which  could  not  be  overcome  by  a  protective  tariff  and  which 
would  yield  to  no  treatment  but  the  heroic  one  of  free  silver  coinage. 

I  had  begun  to  breathe  freer  and  to  think  that  perhaps  the  danger  was 
over  when  Japan  and  India  adopted  the  gold  standard  and  thus  voluntarily 
surrendered  all  of  the  advantages  of  low  wages  paid  in  cheap  money  which 
they  formerly  jjossessed,  but  I  never  exiiected  to  see  our  Democratic  and 
silver-mine  party  friends  face  squarely  about  and  charge  the  reduced  wages 
of  the  past  four  years,  which  it  was  one  of  their  main  objects  to  perpetuate, 
to  the  present  financial  policy  of  this  nation. 

For  forty  years  the  pride  and  boast  of  the  Republican  party  has  been  that 
American  labor  has  been  the  best-paid  labor  in  all  the  world,  ana,  since 
the  resumption  ot  specie  payment  in  1879,  paid  in  the  best  money  of  the 
world. 

The  very  inception  of  that  party  was  an  organized  protest  against  human 
slavery,  and  it  poured  out  its  blood  and  treasure  in  1861  that  labor  might 
be  free,  for  it  knew  that  when  the  lower  stratum  was  lifted  all  would  rise. 

In  the  providence  of  God  and  amid  the  storm  of  war  slavery  died,  and 
from  that  day  this  nation  marched  on  and  up,  till,  in  1892,  a  single  day's 
wages  would  bring  to  the  home  of  the  American  workman  more  of  the 
comfort  and  luxuries  of  life  than  mankind  had  ever  dreamed  of  for  like 
service  since  the  fall  of  Adam;  and  then,  intoxicated  by  our  success  and 
fooled  by  the  very  men  who  now^  preach  the  gospel  of  free  silver  and  fiat 
money,  we  opened  wide  the  doors  of  this  great  nation  to  the  unrestricted 
competition  of  other  lands,  and  in  a  single  day  lost  all  the  fruits  of  a 
struggle  which   had   lasted   thirty  years. 

But  four  years  of  hardship  and  privation  have  not  blotted  from  the  mem- 
oryof  the  toilers  of  this  nation  the  achievements  of  the  past;  and  while  ( 
can  not  speak  for  other  portions  of  the  land,  I  do  believe  that  tliis  fall,  as 
in  1896,  the  vvoi-kingmen  of  New  England  will  march  in  solid  column  to  the 
polls  to  sustain  that  party  which  has  stood  by  them. 


11 

Mr.  Chairman,  out  of  all  the  misery  and  wretchedness  of  that  useless 
sacrifice  of  four  years  of  American  progress  one  scene  comes  back  to  me 
which  I  can  never  forget. 

In  the  town  of  Torrington,  the  banner  Republican  town  of  my  State,  a 
few  days  after  the  splendid  political  victory  of  '94,  a  jubilee  was  being  held. 
The  whole  town  was  ablaze  with  bonfires  and  illuminations. 

As  the  procession  passed  down  the  street  between  the  separate  cottages 
of  American  workingmen  we  came  to  one  house  lighted  from  garret  to 
xjellar  and  decorated  in  every  conceivable  spot  with  American  flags. 

It  was  the  home  of  a  mechanic  who,  strange  to  say,  had  always  before 
voted  the  Democratic  ticket. 

The  front  door  stood  wide  open,  and  in  the  bright  light  which  streamed 
forth  the  mother  stood  watching  the  pa.ssing  crowd. 

Halfway  between  the  door  and  the  street  a  large  box  had  been  placed, 
and  standing  on.it  was  a  little  girl  dressed  in  white  and  waving  the  flag  as 
the  procession  passed. 

It  was  a  beautiful  sight,  but  what  attracted  my  attention  most  was  this 
inscription  on  the  front  of  the  box  at  her  feet: 

"Papa  is  in  the  parade;  mamma  and  I  are  happy." 

It  was  only  the  expression  of  a  thought  of  a  child,  but  it  told  the  glad 
story  that  hope  had  come  to  them  again. 

Mr.  Chairman,  the  working  men  and  women  of  New  England  are  looking 
forward  to  the  day  when  the  full  old-time  prosperity  shall  come  again,  when 
every  man  shall  be  at  work  and  every  child  shall  be  at  school  and  every 
mother  shall  be  at  home  singing  the  song  of  happiness  and  content. 

When  that  time  does  come  and  protection  wages  are  fully  restored,  I 
want  them  paid  in  gold  or  its  full  equivalent,  as  they  have  been  for 
twenty  years. 

You  planters  in  the  South  and«miners  in  the  West  maj"^  vote  for  fiat  money 
and  free  silver  if  you  will.  I  want  the  shining  gold,  with  the  highest  possi- 
ble purchasing  power,  for  New  England  workingmen. 

WAGES  IN  THE  UNITED  STATES. 

Two  years  ago  the  Secretary  of  State  sent  instructions  to  our  consular 
officers  all  over  the  world  to  report,  among  other  things,  the  effect  of  the 
then  existing  currency  system  in  the  countries  where  they  were  stationed 
upon  the  rates  of  labor. 

Every  word  of  this  testimony  is  from  Democratic  sources,  for  they  were 
all  appointees  of  the  party  then  in  power. 

It  is  an  unanswerable  argument  from  our  political  opponents  in  favor 
of  the  single  gold  standard  as  the  one  system  which  will  best  conserve  the 
welfare  of  the  American  workman  and  establish  and  maintain  a  permanent 
prosperity  within  our  borders. 

At  the  very  beginning  of  these  quotations  I  will  place  a  table  showing 
the  relative  wages  in  gold  in  all  occupations  in  the  United  States  from  1840 
to  1891. 

The  time  covered  includes  every  system  of  finance  which  the  nation  has 
had— first,  the  double  standard  nominally;  second,  the  irredeemable  paper 
money  of  the  war  time,  and  third,  from  resumption  in  1879  to  1891. 

It  is  taken  from  the  Senate  Finance  Committee  Eeport  on  Prices,  Wages, 
and  Transportation,  printed  in  1893. 

It  show^s  two  things.  First,  a  slow  but  steady  advance  before  the  war,  a 
sharp  decline,  but  gradual  recovery  during  the  paper-money  period,  and  a 
uniformly  upward  tendency  thereafter. 

There  are  no  statistics  since  1892,  and  I  am  glad  of  it,  for  they  would 
have  been  neither  satisfactory  nor  creditable  to  the  American  people  for 
the  four  years  succeeding. 


18 


Zn7MAN    LABOR   TKB    BEST    MEASTTBE    OF    GOLS. 

The  second  point  to  which  I  would  call  attention  is,  that  human  labor  is 
the  most  uniform  and  most  reliable  in  supply  of  anything  which  the  Lord 
has  jjut  on  this  planet. 

The  chinch  bug,  the  weevil  and  the  potato  bug-,  frost,  drought,  and  storm 
may  all  affect  the  product  of  the  field. 

The  area  of  cultivation  may  be  extended  or  decreased. 

Invention,  improved  machinery,  new  mines  discovered,  oil  fields  ex- 
hausted, all  these  things  serve  to  increase  or  decrease  the  products  of  our 
farms  and  shops,  and  in  these  modern  days  the  "gold  bug"  must  take  all 
the  blame,  but  human  labor  in  this  table  measures  gold  and  proves  beyond 
dispute  the  stability  of  the  existing  standard  and  the  wisdom  of  its  con- 
tinuance. 


Relative  wages  in  gold 

tn  all  occupations,  1840  to  1891,  grouped  by  di^ 

crent  methods. 

Year. 

Simple 
average. 

Average 
according 
to  impor- 
tance. 

Year. 

Simple 
average. 

A  verage 
according 
to  impor- 
tance. 

1840 

87.7 
88 
87.1 
86.6 
86.5 
86.8 
89.3 
90.8 
91.4 
92.5 
92.7 
90.4 
9'>.8 
91.8 
9.5.8 
98 
99.2 
99.9 
98.5 
99.1 
100 
100.8 
lO'U 
76.2 
80.8 
66.2 

82.5 
79.9 
84.1 
83 
83.2 
85.7 
89.1 
91.3 
91.6 
90.5 
90.9 
91.1 
91.8 
93.2 
95.8 
97.5 
98 
99.2 
97.9 
99.7 
100 
100.7 
101.2 
81.9 
86.2 
68.7 

1866 

108.8 
117.1 
114.9 
119.5 
133.7 
147.8 
152.2 
148.3 
145 
140.8 
136.2 
136.4 
140.5 
139  9 
V  141.5 
146.S 
149.9 
152.7 
152.7 
150.7 
150.9 
153.7 
15->.4 
156.7 
158.9 
160.7 

111  1 

1841 

1867 

121.8 

1842 

1868 

119  1 

1843 

1869 

123.6 

1844 

1870 

136.9 

1845 

1871_ 

150.3 

1846 

1872 

153.2 

1847 

1873 

147.4 

1848 

1874 

1875 

145  9 

1849 

140.4 

1850 

1876 

134.2 

1851 

1877 

135.4 

1852 

1878 

139 

185H 

1879 

139.4 

1854 

1880 

143 

18.55 

1881 

150.7 

18.56 

1882 

152.9 

18.57 

1883 

159  2 

1858 

1884 

155.1 

1859 

1885 

18^6 

J  55.9 

I860 

155.8 

1861 

1887 

156.6 

1862 

1888 

157  9 

1868 

1889 

162.9 

1864 

1890 

168.2 

1865 

1891  

168.6 

With  this  table  before  him,  how  any  man  can  claim  that  there  has  been 
any  appreciation  in  the  value  of  gold  since  1866  is  something  I  can  not 
understand. 

CONSULAR  REPORTS  ON  WAGES. 

The  reports  to  follow  will  generally  cover  the  ten  years  previous  to  1896, 
and  refer  to  Europe  and  North  America  only. 

f;Hy7a«(/.— Single  gold  standard. 

The  opinion  seems  rather  to  be  that  industry  may  be  impeded  by  a  bad 
system  of  money,  and  great  social  mischief  and  confusion  produced;  but  a 
good  monetary  system  can  do  no  more  than  let  the  various  forces  of  indus- 
try work  unchecked.  It  is  held  also  that  the  English  monetary  system  is  of 
this  sort.  There  is  no  doubt  about  the  standard  money;  there  is  an  abund- 
ant and  even  indefinite  amount  of  currency  for  all  payments  and  transac- 
tions; credit  is  vastly  developed.  But  the  system  has  been  in  existence  for 
generations  the  same  as  now,  and  there  could  not  be  any  noticeable  stimulus 
due  to  a  monetary  cause  between  the  dates  mentioned,  as  there  has  been  no 
change  in  the  system  in  the  interval. 


IS 

Bate«  of  wag^s  in  the  principal  occupations  were  somewhat  higher  than 
fn  1886,  except  in  agriculture. 

The  record  of  changes  in  wages  now  made  by  the  labor  department  from 
year  to  year  shows  that  the  general  wage  level  changes  very  slowly. 

Cannda. — Single  g-old  standard. 

In  the  census  taken  in  1891,  the  averag-e  wages  paid  in  manufacturing 
and  mechanical  industries  are  shown.  These  industries  were  classified  as 
foIlows< 

Industries  having  an  annual  output  of  $25,000  and  more: 

Wages  per  employee,   1881 $296.20 

Wages  per  employee,   1891 346.60 


Increase   in   ten   years 60.40 

Percentage   increase    18.30 


Industries  having  an  annual  output  exceeding  $500  and  less  than 

$25,000: 

Wages  per  employee,  1881 216.68 

Wages  per  employee  1891 244.24 


Increase  in  ten  years 27.56 

Percentage  increase    12.07 

Belgium. — Double  standard,  but  no  coinage  under  it  for  twenty  years. 
The  rates  of  wages  were  practically  the  same  in   1886.     Since  that  date 
wages  have  not  undergone  any  sensible  variation. 

Netherlands. — Double  standard,  but  mints  open  to  goid  only 
A  slight  advance  in  wages. 

France. — Double  standard,  but  mints  open  to  gold  only. 
For  the  last  fifteen  years  wages,  both  for  skilled  and  unskilled  labor,  have 
slowly  but  regularly  increased  in  France. 

Germany. — Single  gold  standard. 

A  general  advance.    In  Rhenish  Westphalia  textile  industries  wages  in- 
creased  from  about  $143   per  capita  in   1886  to   about  $163   in   1895. 

Day  labor  shows  a  general  slight  advance. 

In  many  trades  the  advance  is  marked  from  1886  to  1892. 

Rates  of  wages  of  the  workingmen  in  shops  of  railroads  under  Gover^tment  eontrol. 


Laborers, 
not  in- 
cluding 
officials. 

Annual  wages  paid  or  ex- 
penses incurred  for  laborers. 

Average  wages  paid 
per  head. 

Year. 

Marks. 

United  States 
currency. 

Marks. 

United 

States 

currency. 

1884-85 

47,048 
47,402 
58,145 

42,838,066 
43,306,825 
59,630,899 

810,199,539.15 
10,311,148.80 
14,197,833.09 

910.50 

913.60 

1,025.50 

9216.78 

1885-86 

217.52 

1894-95 

244.16 

Austria. — Gold  standard  since  1892;  formerly  silver;  free  coinage  abolished 
in  1878. 

During  the  period  embraced  between  the  years  1886  and  1896  manu- 
facturing industries  have  been  stimulated,  owing,  it  is  considered,  to  the 
development  and  improvement  of  foreign  trade.  Wages  have  likewise  in- 
creased during  the  above  period.     The '^  expressed  opinion  of   the  leading 


14 


manufacturers  seems  to  be  that  the  increase  in  wa^es  «  due  to  pom*- 
cal  reasons  rather  than  to  any  changes  in  the  currency.  To  meet  the  de- 
mand of  the  labor  party  for  a  legal  working  day  of  eight  hours,  a  compro- 
mise was  effected  by  increasing  the  rate  of  wages  and  making  the  workmg 
day  ten  hours. 

Sicitzerland.—BovLble  standard;  mints  open  to  gold  only. 

It^suniversally  known  and  recognized  that  the  wa^es  for  all  classes  of 
labor  have  very  appreciably  increased  within  the  last  ten  years  and  the  con- 
dition of  the  laboring  man  greatly  improved.  This,  however,  is  attributed 
almost  excfusively  to  the  better  o/ganization  of  labor,  their  unions  enabling 
them  to  demand  higher  wages. 

/foZw.— Double  standard;  mints  open  to  gold  only.  ^^     ,.       .  „^„„, 

According  to  statistics  got  together  and  published  by  the  director-general 
of  agriculture,  there  has  been  I  marked  increase  in  the  wages  of  agricu  tu- 
ral  laborers.  But  owing  to  the  minimum  wages  originally  earned  m  this 
[abor  Se  increase  seemed  greater  than  it  has  been  in  ^^^\'^  ^^^^^^^^ 
condition  of  living  be  considered.  A  general  increase  is  to  be  noted  how- 
ever, and  especially  in  those  industries  in  which  inventions  have  made  im- 
provements, yet  even  this  branch  has  its  exceptions,  as  m  the  case  of  silk 
sjrnnSg  At  the  same  time  the  prices  of  products  in  general  use  have  gone 
down  and  the  hours  of  labor  have  generally  been  lessened. 

jlf ea?{co —Nominally,  double  standard;   actually,  silver.  , 

Xs  Sards  wages  paid  in  Mexico,  it  has  been  found  impossible  to  obtejn 
any  accurate  steSistics  as  to  the  rate  which  was  paid  ^^^/^^^.^^.^-J^, 
Government  statistics  at  that  time  were  not  very  accurate;  but  from  ^1 
the  obtafnable  information,  derived  from  hearing  the  facts  and  views  of 
well-Informed  persons  cognizant  of  the  conditions  existing  then  and  now 
?I  cai  safSv  bfstated  thlt  as  regards  skilled  labor  there  has  been  a  slight 

ncrease    Sih  iithe  amount  plid  and  in  the  demand    while  as  regards 
unskmed  Sor  the  conditions  may  be  said  to  be  substantia  ly  the  same 

'Se  amount  of  wages  paid  varies  throughout  the  Republis,  bemg  higher 
in  some^ections  thS  in  others,  and  in  certain  mining  districts  lower  than 
ihey  were  ten  to  fifteen  years  ago.  This  is  generally  owing  to  local  causes 
a!1  matter  of  course,  owing  to  the  construction  and  management  of  7,000 
4nes^fTailroaZSe  introduction  of  electricity,  and  the  Placmg  of  new 
^Tirn^rnvPd  machinery  in  many  of  the  mines  and  m  some  of  the  agncul- 
t^ra  Xtrlctl^here  ha^ieen  an  increase  in  the  number  of  skilled  laborers 
Ind  some  increase  in  the  demand  for  the  same;  but  it  is  true  that,  with  the 
^eat  mass  ^Mexican  laborers,  there  has  been  but  little  if  any  change  m 

^^^^''wMnLurSlv  be  expected,  there  are  some  instances  where  laborers 
retivT^ore  than  en'^yeaS  ago, 'but  these  are  the  exceptions.  There  are 
I?so  many  instances  where  leis  is  received.  The  daily  wage  paid  to  the 
?i^"Ser"tired  by  the  day  does  -t  exceed  30  cents  per^daytakin^^ 
into  account  the  whole  laboring  agricultural  population.  1  here  _  are  m 
S^ceTTere  the  day  laborer  -ceives.  50  cents  per  ^^7^  ^"^j^-^^J^ 
^■n^  aicrt  iTiKtATices  where  he  only  receives  15  to  20  cents,  xne  secreutrjr 
S'thi  tr^ux^  ?f  Mexico  estimates  the  daily  wages  of  farm  laborers  at 

^^RHtiHll  Honduras.— Gold  standard  since  1894;  formeriy  silver. 

?he  lab?rTng  man  has  been  materially  benefited  beyond  the  shadow  of 
n  doubt  and  well  he  knows  it,  as  against  his  silver  vvages,  as  pr^or  to 
fhP  ^oid  stendlrd  his  pay  was,  in  silver,  from  $10  to  $14  a  month,  and 
;\\f  he  hS'^to  buy  an^d  W  ^or  out.of  ^^^l^^.^Z'lT^^^fng) 
+ir.Tnt^lv  as  silver  decreased  commercially.  Now  (at  the  date  oi  wnwng; 
ieirete^pa'd  n  gold  what  he  then  got  in  silver,  and  what  he  now  buys 
?s  not  sSbfect  t?  the  fluctuation  of  silver.  The  price  of  1*^?^^^^ 
nrettv  evenly  from  1886  up  to  October,  1894.  There  may  have  been  som. 
Se  differenceTn  wa^es  during  that  period,  but  not  of  aoiy  mom^t. 


16 

[From  the  report  of  tha  governor.] 
The  laboring  classes,  tiie  backbone  of  the  colony,  have  largely  benefited 
as  regards  wages,  the  dollars  now  earned  equaling  the  number  formerly 
received  by  them  in  sols.  Savings-bank  deposits  have  increased.  Land  and 
house  property,  whether  in  town  or  country,  has  increased  100  per  cent  in 
value,  commanding  now  in  gold  the  same  amount  received  formerly  in  the 
mqney  it  replaced. 

Nicaragua. — Silver  standard. 

There  are  few  manufacturing  industries  in  Nicaragua,  and  the  existing 
currency  has  done  nothing  to  stimulate  them.  The  people  prefer  agri- 
cultural pursuits  to  manufacturing  enterprises.  The  wages  of  the  work- 
ing classes  occupied  in  all  kins  of  labor  range  from  40  cents  to  $1.50 
silver  (18.8  cents  to  701^  cents  gold)  per  day  for  unskilled  or  skilled  labor. 
Clerks  and  the  higher  classes  of  laborers  receive  from  $2  to  $6  (94  cents 
to  $3.82  gold)   per  day. 

Costa  Rica. — Nominally,  double  standard;  actually,  silver. 

In  1886  prices  of  labor  may  be  considered  to  have  been  one-third  less  than 
they  are  to-day — in  Costa  Rican  currency. 

Wages  (peons),  1886,  $1;  1896,  $1.50. 

The  increase  of  wages,  measured  in  gold,  since  1886  is  apparent  only. 
Peons  receive  now  less  gold  than  they  did  in  1886. 

Denmark. — Gold  standard. 

I  have  talked  with  the  director-general  of  foreign  affairs  and  others  on 
the  practical  effect  of  the  currency  on  manufacturing  and  the  wages  of 
labor,  etc.,  and  have  learned  in  a  general  way  that,  though  Denmark  is 
not  largely  a  manufacturing  country,  industrial  enterprise  is  generally 
increasing,  and  the  wages  of  labor  have  increased  here,  as  they  have,  hap- 
pily, throughout  Europe;  but  whether  this  increase  is  attributable  to  the 
currency — with  which  the  people  generally  seem  satisfied,  though  there  is 
a  large  party  here  which  favors  a  double  standard  of  gold  and  silver — is  a 
matter  of  conjecture  and  argument. 

Consul  Ryder,  in  1884,  made  an  exhaustive  report  specifying  the  wages 
of  laborers  in  many  lines  of  industry.  I  have  been  informed  that  wages 
have  advanced,  on  an  average,  about  10  per  cent  since  that  time. 

Portugal. — Gold  standard,  but  specie  payments  suspended  in  1891. 

Since  the  suspension  of  specie  payments  there  has  been  certainly  some 
increase  in  the  manufacturing  industries,  but  not  sufficiently  marked  to 
attract  attention.  The  average  rate  of  wages  paid  for  labor,  skilled  and 
unskilled,  has  remained  about  the  same  as  it  was  when  the  country  was  on 
a  specie  basis. 

In  a  general  way,  it  can  only  be  said  that  while  labor,  both  skilled  and 
unskilled,  has  remained  at  substantially  the  same  wage,  the  prices  of 
agricultural  products,  clothing,  groceries,  boots  and  shoes,  hardware, 
drugs,  etc.,  have  increased  about  25  per  cent,  which  is  about  the  premium 
of  gold. 

Russia. — Silver  standard  at  time  of  this  report;  since  changed  to  single 
gold  standard. 

As  to  the  growth  of  manufactures,  it  has  long  been  stimulated  by  a 
protective  tariff  as  well  as  by  the  ability  of  the  manufacturers  to  pay  their 
workmen  approximately  the  old  scale  of  wages  in  the  cheaper  money  of  the 
present  system  [then  referring  to  silver]. 

An  inquiry  into  wages  does  not  show  that  the  workmen  participate  appre- 
ciably in  the  benefits  bestowed  upon  these  industries.  Official  statistics 
showing  the  condition  of  agriculture  are  lacking,  except  as  respects  the 
rates  and  course  of  wages  in  agricultural  pursuits,  which  will  be  shown 
in  a  later  part  of  this  -report.  It  suffices  to  state  here,  where  the  general 
effect  is  being  considered,  that  I  have  not  read  or  heard  a  word  favor- 


16 

able  to  the  condition  of  agriculture;  that  the  universal  testimony  is  of 
extreme  depression,  and  the  wages  of  the  agricultural  laborers,  as  shown 
by  the  official  table  referred  to,  have  had,  in  the  main,  a  downward  ten- 
dency. 

Spain. — Double  standard;   mint  open  to  gold  onlj'. 

All  information  received  from  as  reliable  sources  as  individual  observers 
can  be,  indicate  two  things:  First,  that  so  far  as  iinslviiled  labor  is  con- 
cerned, wages  have  remained  stationary;  second,  that  though  among  skilled 
laborers  for  the  same  amount  of  skill  wages  have  remained  stationary, 
yet  owing  to  some  of  the  more  recent  industrial  enterprises  undertaken 
in  Spain,  requiring  greater  expertness  or  specialism,  the  average  of  wages 
for  skilled  laborers,  a  considerable  number  of  whom  are  foreigners,  has 
been  raised. 

During  the  last  ten  years,  among  the  higher  class  of  employees  in  the 
service  of  the  railways,  the  wages  or  salaries  have  been  rai.sed  to  some 
extent,  as  lias  been  done  with  (lovernment  employees,  but  any  connection 
between  this  rise  and  the  shrinkage  in  the  value  of  Spanish  currency  has 
been  absolutely  disclaimed. 

Sweden. — Gold  standard.  From  ta^bles  given  by  the  American  minister  a 
general  advance  is  shown  for  past  ten  years. 

'Soricay. — Gold  standard.  « 

The  existing  currency  established  by  law  of  June  4,  1873,  has  not  had 
any  practical  and  direct  influence  on  the  manufactiuMng  industries  and 
the  wages  of  labor.  The  latter  hare  increased  during  the  last  decade  in 
this  country  as  elsewhere,  but  i^robably  from  reasons  diiferent  from 
the  introduction  of  the  gold  unit.  The  last  statistics  published  by  the 
central  statistical  bureau  of  ISorway  do  not  embrace  any  later  year  than 
1890.  which  is  compared  with  the  statistics  of  1885.  But  it  may  be  safely 
said  that  since  the  former  year  the  wages  of  labor  have  steadily  increased, 
though  I  am  unable  to  state  the  actual  rates. 

No  comment  upon  these  quotations  is  necessary,  for  the  fact  is  clearly 
established  that  under  the  gold  standard  business  conditions  have  been 
settled  and  a  general  advance  of  wages  has  occurred  both  in  Europe  and 
America;  that  not  only  have  higher  wages  been  paid,  but  they  have  been 
paid  in  money  of  the  greatest  purchasing  power,  and  that  if  any  decline  in 
wages  is  found,  it  is  in  silver  standard  countries. 

THE   GOLD   STANDARD   THE  WORLD'S  CHOICE. 

Mr.  Speaker,  within  the  limit  of  the  century  now  drawing  to  a  close 
855.000,000  of  the  population  of  the  globe  have  voluntarily  abandoned  the 
free  coinage  of  silver  and  chosen  gold  as  the§r  standard  measure  of  value. 

They  comprise  the  skill,  the  genius,  the  intelligence,  the  culture,  the 
enterprise,  the  progress,  and  the  wealth  of  the  world. 

To  eveiy  one  of  the  other  countries,  belated  stragglers  on  the  march  of 
time,  or  not  yet  emerged  from  barbarism,  we  are  sending  missionaries  to- 
day to  lead  them  up  to  civilization  and  a  higher  life. 

The  advocate  of  free  silver  coinage  may  turn  to  such  a  source  for  wis- 
dom and  counsel  on  financial  methods  if  he  will,  but  this  great  Republic 
will  not  follow  him,  for  its  people  have  been  taught  by  thefr  own  exj>eri- 
ence  that  a  currency  solidly  based  on  gold  has  not  only  built  up  the  nation 
in  the  days  of  peace,  but  is  its  best  defense  in  time  of  war. 


(No.  la.) 


QROSVENOR 


ON 


ycicialiiiOpsilloiiioWiirineasflnis. 


It  does  seem  to  me  to  be  a  curious  fact  that  no  bill 
can  be  reported  here  which  looks  to  the  real  defense 
of  the  country  and  to  the  real  purpose  of  defeating 
the  foe  with  whom  we  are  contending,  without  ad= 
verse  criticism  being  made,  and,  in  mv  humble 
judgment,  that  sort  of  criticism  which  ought  to  have 
no  weight  with  the  members  of  the  House* 

Mr.  HAY  (Dem.  of  Virginia). 

[Eecord,  p.  6611,  May  18, 1898.] 


Since  the  outbreak  of  the  Spanish  War  they  have 
committed — that  is,  the  Democrats  in  the  House — 
about  every  error  possible.  Giving  a  grudging  sup= 
port  to  the  various  imperative  measures  which  fol- 
lowed the  orrginal  appropriation  of  $50,000,000  for 
the  national  defense,  they  lined  themselves  up  almost 
solidly  against,  the  War-Revenue  Bill,  and  capped 
the  climax  last  Wednesday  by  casting  the  bulk  of 
their  vote  in  opposition  to  the  annexation  of  Hawaii. 

[Beoord,  June  29, 1898.] 

SREUCH  OF 

Hon.  CHARLES   H.  QROSVENOR, 

OF*     OHIO, 

IN  THE  HOUSE  OF  RIIPRE5ENTATIVBS. 


WAR  EXPENDITURES. 


The  Hoiise  having  under  consideration  the  conference  report  on  the 
bill  (H.  R.  10100)  to  provide  ways  and  means  to  meet  war  expendi- 
tures  

Mr.  GROSVENOH  said: 

Mr.  Speaker:  Shortly  after  the  meeting  and  adjoummeait  of  the 
Republican  State  cotnvention  of  Ohio,  over  the  deliberations  of  which 
I  had  the  honor  to  preside,  some  remarks  which  I  made  in  that  connec- 
tion were  severely  criticised  in  one  of  tihe  great  newspapers  of  the  coun- 
try, and  I  was  sharply  assailed  in  the  House  by  the  gentleman  from 
Missouri  [Mr.  Coohkan]  and  the  gentleman  from  Mississippi  [Mr. 
Allen].  The  language  complained  of  is,  as  I  understand,  contained  in 
the  following: 

THE  ADMINISTBATION'S  WAS   POLICY. 

There  came  to  the  country  an  Incident  that  waa  not  counted  upon  at 
St.  Louis.  There  came  to  the  Administration  of  "William  McKinley  a 
responsibility  never  dreamed  of  when  he  was  elected  President  of  the 
United  States.  War  came.  The  mutterings  of  the  coming  storm  began 
to  be  heard  across  the  Qulf  of  Xexico,  almost  upon  the  threshold  of  the 
Administration.  He  found  a  country  unfitted  for  war,  incapable  of  wax, 
incapable  of  a  respectable  effort  at  war,  and  he  very  early  found  a  body 
of  men  in  the  country,  and  largely  in  Congress,  who  were  willing  to  gain 
a  little  early  bird  stolen  sentiment  in  favor  of  rushing  to  war  without 
the  intelligence  to  know  whether  we  were  ready  to  go,  without  the  intelli- 
gence to  know  what  we  were  going  to  war  for. 

And  if  you  will  notice,  the  passage  of  the  fifty-million  war  emergency 
bill  in  Congress  marks  the  last  echo  of  patriotism  of  nine  out  of  every 
ten  of  those  gentlemen.  They  were  willing  to  gain  some  sort  of  popu- 
larity before  the  people  of  the  country  by  shouting  about  the  suffering 
reconcentradoes  of  Cuba.  But  when  the  money  ha^  been  asked  for  for 
the  suffering  soldiers  of  the  Union,  nine  out  of  every  ten  of  them,  have 
voted  "no"  on  every  appropriation  bill.  They  were  willing  to  demand 
that  the  President  should  send  his  army  and  his  ships  to  bombard 
Havana,  but  when  they  have  been  asked  to  raise  the  money  to  carry 
on  the  war,  all  but  six  of  them  in  the  House  of  Representatives  and  all 
but  eight  of  them  in  the  Senate  voted  "no"  upon  every  proposition. 

On  the  same  day  of  the  convention  in  Ohio,  a  Democratic  news- 
paper, published  in  the  city  of  Washington,  to  wit,  the  Washington 
Daily  Times,  owned,  as  it  is  understood,  by  one  of  the  most  distin- 
guished Democrats  of  the  United  States  (Mr.  Hutchins),  printed  the 
following: 

DEMOCBATIC  FOLLY. 

We  do  not  think  it  will  profit  the  Democrats  of  the  House  to  hold 
any  more  caucuses.  It  will  be  much  better  for  the  minority  to  go  at 
once  into  voluntary  liquidation  and  apply  for  a  leader  who  has  the  ability 
to  lead  and  whom  they  with  self-respect  can  follow.    Nothing  short  of  a 


3 

complete  reorganization  wltMn  the  next  thirty  days  will  avert  the  popu- 
lar wrath  to  come. 

Since  the  outbreak  of  the  Spanish  war  they  have  committed  about 
every  error  passible.  Giving  a  grudging  support  to  the  various  impera- 
tive measures  which  followed  the  original  appropriation  of  $50,000,000 
for  the  national  defense,  they  lined  themselves  solidly  against  the  war- 
reveaue  bill,  and  capped  the  climax  last  Wednesday  by  casting  the  bulk 
of  their  vote  in  opposition  to  the  annexation  of  Hawaii,  a  consummation 
devoutly  desired  by  a  two-thirds  majority  in  both  Houses  of  Congress 
and  four-fifths  of  the  American  people  without  "Regard  to  party. 

The  result  is  plain.  What  was  intended  to  be,  and  what  was  originally, 
a  purely  American  war,  has  degenerated  in  the  eyes  of  the  country  into 
a  Republican  war,  with  all  that  that  implies. 

The  Republican  President  stands  before  the  world  to-day  as  one  pur- 
suing a  patriotic  policy  in  the  teeth  of  unreasoning  Democratic  opposition. 
When  victory  comes  to  him  and  Spain  is  humbled  in  the  dust;  when 
America's  possessions  are  enriched  by  the  addition  of  Hawaii,  the  Philip- 
pines, Puerto  Rico,  and  perhaps  the  Canaries,  Mr.  HcXinley  can  rise  and 
truthfully  say:  "This  is  my  work — mine  and  the  Republican  party's.  As 
we  saved  the  Union  in  1861,  so  now  do  we  glorify  it  with  victory.  Ours 
the  triumph,  ours  the  spoils,  including  a  majority  in  the  new  House  of 
Representatives. " 

And  the  people  on  the  8th  day  of  November  wil  cry  "Amen." 

In  this  connection,  and  in  order  that  the  representative  character 
of  this  paper  may  be  fully  accredited,  I  advert  to  the  fact  that  very 
recently  the  national  committee  of  the  Democratic  party  furnished  to 
this  paper  a  certificate  that  it  was  the  paper  recognized  as  a  leading  and 
distinguished  organ  of  the  Democratic  party  of  the  United  States,  and 
this  certificate  had  the  approval  of  the  honorable  chairman  of  the  na- 
tional committee,  Senator  Jones  of  Arkansas. 

Later  the  Hon.  Nelson  Dinglet,  chairman  of  the  Ways  and  Means 
Committee,  in  a  speech  which  he  made  accepting  tihe  nomination  for 
Congres-s  in  his  district,  used  the  following  language: 

As  soon  as  w©  were  actually  plunged  into  war,  its  energetic  and  suc- 
cessful conduct  required  money  to  carry  it  on,  and  a  large  amount  for 
the  reason,  first,  that  modern  ships  and  guAs  and  engines  of  war  are  more 
powerful  and  expensive  than  any  known  in  any  previous  war;  and,  second, 
that  for  the  first  time  in  our  history  we  are  compelled  to  carry  on  war 
against  a  country  separated  from  us  by  great  oceans. 

To  provide  ways  and  means  to  meet  war  expenditures  it  became  neces- 
sary not  only  to  impose  special  taxes,  to  which  resort  is  had  only  in  time 
of  war,  but  also  to  authorize  the  Government  to  borrow  whatever  addi- 
tional sums  might  be  required;  and  to  issue  its  promises  to  pay  the  amount* 
borrowed,  with  interest — in  other  words,  to  issue  bonds  and  certificates 
of  indebtedness. 

When  this  measure  came  before  both  House  and  Senate,  at  once  the 
same  Chicago-platform  Democracy,  who  had  been  so  fierce  to  plunge  us 
into  war  before  we  were  ready,  began  to  oppose  so  much  of  it  as  provided 
for  borrowing  and  paying  what  we  desired  to  borrow,  with  interest.  Imi- 
tating the  celebrated  Ensign  Stebbins,  they  were  for  war,  but  practically 
opposed  to  providing  adequate  means  for  carrying  it  on  in  the  only  way 
open  to  us,  after  we  had  applied  available  taxation.  They  plumed  them- 
selves on  their  readiness  to  vote  appropriations,  and  voted  against  the  war- 
revenue  bill  which  provided  the  ways  and  means  to  pay  the  appropriations. 
They  declaimed  against  the  bloated  bondholder,  and  opposed  "mortgaging 
the  future,"  but  were  never  able  to  show  how  the  Government  any  more 
than  an  individual,  could  borrow  money  without  engaging  to  pay  what 
waa  borrowed,  with  interest  for  its  iise. 


Immediately  after  the  assaults  made  uj>on  m>e  I  gare  notice  that  at 
the  earliest  opportunity  I  would  answer  the  criticisms  that  were  made 
by  the  gentleihen  to  whom  I  have  referred,  as  well  as  the  newspaper, 
for  which  I  have  always  had,  and  may  say  have  yet,  the  highest  appre- 
ciation and  regard. 

Under  the  rules  of  the  House,  I  could  not  speak  only  when  the  House 
was  in  Committee  of  the  "Whole  on  the  State  of  the  Union.  I  m^de 
haste  to  be  ready,  but  after  my  preparations  were  complete  the  House 
did  not  again  go  into  the  Committee  of  the  Whole,  and  therefore  no 
opportunity  was  given  me  except  by  unanimous  consent. 

I  sought  the  opportunity  to  be  heard  by  gaining  unanimous  consent, 
but  was  met  by  a  vociferous  opposition,  so  I  am  driven  to  avail  myself 
of  printing  a  speech  on  the  war-revenue  bill,  and,  fortunately  for  me, 
in  this  case  it  is  appropriate,  for  it  was  about  and  concerning  the  war- 
revenue  measure  that  I  made  my  speech  complained  of  at  Columbus. 

Now,  in  the  first  place,  what  did  I  say  and  what  was  the  plain  mean- 
ing of  it?     Let  us  see.     The  language  complained  oi  is  as  given  above. 

Every  fair-minded  man  will  say  that  my  meaning  and  my  purpose 
and  intent  was  to  assail  the  Democratic  majority  on  this  floor,  and 
that  the  use  of  the  word  "appropriation"  meant,  and  was  intended  to 
mean,  and  was  understood  by  every  intelligent  man  to  mean  the  appro- 
priation of  revenues  of  the  country  as  embodied  in  the  war-revenue  bill. 
The  language  of  Mr.  Dingley  means  the  same  thisg.  The  language  of 
the  Democratic  editor,  to  whom  I  have  referred,  goes  a  good  deal  further, 
and  charges  the  Democratic  party  with  very  much  more  than  I  had  in- 
tended or  was  understood  to  intend.  NO  BILL  CAN  BE  REPORTED 
HERE  WITHOUT  ADVERSE  CRITICISM. 

But  now,  having  promised  to  make  clear  my  vindication,  I  propose 
to  lay  down,  as  a  text  for  the  remarks  I  make,  the  language  of  a 
Democratic  member  of  this  House.  I  refer  to  the  statement,  made  by 
the  Hon.  Mr.  Hay,  of  Virginia,  Democratic  member  of  the  House  of 
Representatives,  made  in  the  House  on  the  18th  day  of  May,  1898  (see 
Record,  page  5609  to  5614). 

It  was  pending  the  war  measure,  which  had  been  asked  for  by  the- 
War  Department,  to  prevent    spies    from    giving    information  to  the 
Spanish  of  the  location,  size,  and  material  of  our  defenses.     Bitter  op- 
position had  come  from  the  Democrats  to  the  pre'sent  consideration  of 
the  bill,  and  finally  Mr.  Hay  used  the  following  language: 

I  say  this  is  a  common-sense  proposition,  I  say  that  it  is  one  that 
ought  to  be  supported;  and  it  does  seem  to  me  to  be  a  curious  fact  that 
no  bill  can  be  reported  here  that  looks  to  the  real  defense  of  our  country 
and  to  the  real  purpose  of  defeating  the  foe  with  whom  we  are  contend- 
ing without  adverse  criticism  being  made,  and,  in  my  humble  judgment, 
that  sort  of  criticism  which  ought  to  have  no  weight  with  the  members 
of  the  House. 

Now,  taking  Hheee  measuref  in  the  order  in  which  they  came  to  the 
House,  let  us  »ee.  Ab  I  re*d  the  Recobd,  April  4,  1898,  was  the  first 
effort  made  to  place  the  Government  on  a  strictly  war  footing,  and 
redEerring  to  page  3896  of  the  Recobd  it  will  be  found  that  the  first 
emergency  measure  waa  objected  to  by  the  leader  of  the  Democratic 


minority;  and  in  this  connection  I  beg  to  call  the  attention  of  the  mem- 
bers of  the  House  to  the  words  of  Mr.  Bailey,  on  page  3896,  after 
lie  had  killed,  for  the  time  being,  the  measure  under  consideration. 
He  said: 

"ONLY  A  SHOET  TIME  AGO  WE  WERE  COMPELLED  TO 
VOTE  TO  PLACE  $50,000,000  TO  BE  USED  AT  THE  DISCRE- 
TION OF  THE  PRESIDENT  OF  THE  UNITED  STATES." 

I  cite  this  to  justify  the  Washington  Times  when  it  said  that  vote 
was  a  reluctant  vote,  and  that  it  was  given  rather  in  fear  than  in  love. 

Here  follows  the  Congressional  Recoed  with  the  several  pages  con- 
taining the  appropriations  of  the  House  on  April  4,  April  12,  May  9, 
May  12,  May  10,  May  24,  June  1,  June  IG,  June  20,  and  June  23. 
It  will  be  seen  that  on  the  4th  of  April  the  chairman  of  the  Military 
Committee,  at  the  request  of  the  War  Department,  asked  to  suspend 
the  rules  and  after  a  forty-minutes'  debate  pass  an  emergency  measure, 
but  to  this  Mr.  Handy,  a  Democrat,  of  Delaware,  objected.  And  further 
on,  after  efforts  at  compromise  had  been  made,  Mr.  Sayebs,  of  Texas, 
a  Democrat,  also  objected. 

It  will  be  seen  that  on  the  12th  of  April  a  bill  then  before  the  House 
fell  under  the  objection  of  Mr.  McMillin,  one  of  the  Democratic 
leaders;  and  let  me  point  to  the  House  that  on  the  9th  of  May  (Record, 
5299),  after  the  fall  of  Manila,  and  when  we  were  struggling  to  increase 
the  naval  power,  that  this  same  bill,  coming  from  a  conference  was  de- 
feated by  Mr.  Bailey,  who  made  a  point  of  no  quorum.  A  bill  to 
reorganize  the  Adjutant-General's  Department  fell  under  the  objection 
of  the  Democrat  from  Texas.  Again,  on  the  24th  of '  May  it  will 
be  seen  that  an  effort  to  improve  the  Hospital  Corps  was  under  con- 
sideration and  fell  under  the  objection  of  a  single  Democrat,  Mr.  Under- 
wood. 

On  June  6  a  bill  for  the  improvement  of  the  Quartewnaster-General's 
Department  was  knocked  out  by  Mr.  Underwood,  who  asked  for  the 
regular  order.  Again,  on  the  16th  of  June,  the  chairman  of  the  Com- 
mittee on  Military  Affairs  .of  the  House  asked  unanimous  consent  that 
time  be  given  for  a  certain  emergency  bill,  and  Mr.  Underwood  ob- 
jected. On  the  same  day  the  chairman  appealed  for  the  setting  apart 
of  a  single  day  for  the  consideration  of  these  bills  and  Mr.  Bartlett, 
a  Democrat,  objected. 

On  the  20th  of  June  Mr.  Hull  asked  that  the  23d  of  June  be  set 
apart  for  the  consideration  of  these  bills,  and  Mr.  Underwood  objected. 
Again,  on  the  23d  of  June,  another  appeal  was  made  to  the  Bouse,  and 
the  honorable  chairman  of  the  committee  used  this  language:  "They 
are  recommended  by  the  Secretary  of  War  and  are  necessary  for  the 
prosperous  business  of  the  war,"  and  two  gentlemen  objected,  one  a 
Democrat  and  the  other  a  Republican,  Mr.  Baird  and  Mr.  Codding. 

April  4,  1898,  Record,  pages  3896,  3897: 

Mr.  Cannon.  Mr.  Speaker,  I  desire  to  report  from  the  Committee 
on  Appropriations,  with  favorable  recommendation,  and  ask  that  it  be 
considered  at  this  time. 


Joint  resolution  (S.  129)  relative  to  suspension  of  part  of  section  355  of 
Kevised  Statutes,  relative  to  erection  of  forts,  fortifications,  etc. 

Resolved  by  the  Senate  and  House  of  Representatives  of  the  United  States  of 
America  in  Congress  assembled.  That  in  case  of  emergency,  when,  in  the 
opinion  of  the  President,  the  immediate  erection  of  any  temporary  fort  or 
fortification  is  deemed  important  and  urgent,  such  temporary  fort  or  forti- 
fication may  be  constructed  upon  the  written  consent  of  the  owner  of  the 
land  upon  which  such  work  is  to  be  placed;  and  the  requirements  of  section 
355  of  the  Revised  Statutes  shall  not  be  applicable  in  such  cases. 

Mr.  Bailet.  Mr.  Speaker,  is  this  presented  as  a  matter  of  privilege? 

The  Speakek.  It  is  presented,  as  the  Chair  understands,  for  the 
unanimous  consent  of  the  House. 

Mr.  Bailet.     Well,  Mr.  Speaker,  before  any  other  preparations  for 

war  are  made,  I  want  to  know  whether  we  are  going  to  have  war.     I 

object  to  the  immediate  consideration  of  the  resolution. 

******  If 

Mr.  Bailey.  Mr.  Speaker,  I  simply  desire  to  call  the  attention  of 
the  House  to  the  fact  that  on  several  occasions  within  the  last  thirty 
days  this  House  has  been  called  upon  to  vote  appropriations  and  per- 
missions to  moQt  extraordinary  cases,  and  yet  this  House  is  not  in  the 
possession  of  any  fact  which  warrants  it  in  supposing  that  the  executive 
department  believes  that  any  extraordinary  emergency  is  upon  the 
country. 

Only  a  short  time  ago  we  were  comj)elled  to  vote  to  place  $50,000,000 
under  the  absolute  discretion  of  the  President  of  the  United  Slates. 
The  situation  at  that  time  appeared  so  critical  that  no  gentleman  on  this 
side  was  willing  to  resist  that;  and  we  all  voted  for  it. 

April  4,  1898,  Recoed,  pages  3900,  3901: 

ABMY  REORGANIZATIOUr. 

Mr.  Hull.  Mr.  Speaker,  I  move  to  suspend  the  rules  and  adopt  the 
resolution  which  I  send  to  the  Clerk^s  desk. 

The  Speakee.  The  gentleman  from  Iowa  moves  to  suspend  the  rules 
and  adopt  the  resolution  which  the  Clerk  will  report. 

The  Clerk  read  as  follows: 

"Resolvod,  That  the  rules  be  suspended  and  the  bill  (H.  R.  9253)  for  the 
better  organization  of  the  Army  be  considered  with  forty  minutes'  debate 
at  the  conclusion  of  the  vot«  to  be  taken  on  amendments  reported  from  the 
committee  and  then  the  bill  to  final  passage." 

******* 

The  Speakee.  The  gentleman  from  Iowa  asks  unanimous  consent 
that  the  bill  H.  E.  9253  shall  be  in  order  after  the  reading  of  the  Journal 
on  Wednesday  morning.    Is  there  objection? 

Mr.  Handy.    I  object. 

******* 

Mr.  Shafeoth.  Mr.  Speaker,  I  ask  unanimous  consent  again  tliat 
the  time  for  the  consideration  of  this  bill  be  set  for  next  Wednesday 
morning  immediately  after  the  reading  of  the  Journal. 

Mr.  Cox.  Mr.  Speaker,  I  was  recognized  by  the  Speaker,  and  I  do 
not  propose  ttiat  the  gentleman  from  Colorado  [Mr.  Shafboth]  ghall 


introduce  his  point  here  at  this  particular  time.  [Laughter.].  If  I  am 
recognized,  I  will  proceed. 

The  Speaker.  The  gentleman  is  only  recognized  under  consent  of 
the  House. 

Mr.  Cox.    Well,  if  anybody  objects,  all  right. 

Mr.  Sayers.  If  I  can  get  two  minutes,  I  am  perfectly  willing  that 
the  gentleman  from  Tennessee  shall  speak  in  behalf  of  this  bill. 

Mr.  Cox.  I  do  not  propose  to  buy  my  time  of  the  gentleman  from 
Texas;  if  he  objects,  let  him  object. 

Mr.  Sayers.    I  will  object,  then,  Mr.  Speaker. 

April  12,  1898,  Eecord,  pages  4134,  4135: 

NAVAL  BATTALION,  DISTBICT  OF  COLTJMBIA. 

Mr.  HiLBORN.  Mr.  Speaker,  I  ask  unanimous  consent  to  take  from 
the  table  Senate  bill  No.  1316,  to  provide  for  organizing  a  naval  bat- 
talion in  the  District  of  Columbia,  and  ask  for  its  immediate  considera- 
tion. 

Mr.  Lewis  of  Washington.  Mr.  Speaker,  I  have  a  pri^dleged  reso- 
lution  

The  Speaker.  The  Clerk  will  proceed  with  the  reading  of  the  bill 
indicated  by  the  gentleman  froon  California,  after  which  the  Chair  will 
ask  if  there  be  objection. 

The  bill  was  read  at  length. 

The  Speaker.  Is  there  objection  to  the  present  consideration  of  the 
bill? 

Mr.  Bailey.  Mr.  Speaker,  reserving  the  right  to  object,  I  would 
like  an  explanation  of  this  bill.  But  in  the  first  place  I  should  like  to 
ask  the  gentleman  from  California  this  question:  Does  this  bill  pro- 
pose to  pennanently  increase  the  naval  force  of  the  United  States? 

4:  sic  4:  4s  :):  :j:  :|e 

The  Speaker.  Is  there  objection  to  the  present  consideration  of  the 
bill? 

Mr.  KiDGELY.    I  object,  Mr.  Speaker. 

The  Speaker.    Objection  is  made  by  the  gentleman  from  Kansas. 

April  12,  1898,  Record,  pages  5440-5443: 

NAVAL  HOSPITAL  COB,PS. 

Mr.  BoTTT^LLE  of  Maine.  Mr.  Speaker,  I  move  that  the  House  resolve 
itself  into  Committee  of  the  Whole  House  on  the  state  of  the  Union 
for  the  consideration  of  the  bill  I  send  to  the  desk. 

Mr.  Osborne.  Mr.  Speaker,  before  that  I  desire  to  submit  a  parlia- 
mentary inquiry. 

The  Speaker.  Does  it  refer  to  the  present  motion?  Otherwise  it 
would  not  be  in  order. 

Mr.  Osborne.  It  relates  to  the  proceedings  in  the  House  during  the 
day. 

The  Sprakhr.  The  Chair  wiU  hear  the  parliamentary  inquiry  of  the 
gentleman. 


Mr.  Osborne.  I  wish  to  ask,  Mr.  Speaker,  having  this  morning  ob- 
jected to  the  consideration  of  the  bill  (H.  R.  4073)  authorizing  the 
appointment  of  a  nonpartisan  labor  commission,  and  being  desirous 
of  withdrawing  that  objection,  if  it  would  be  in  order  for  me  now  to 
do  so? 

The  Speaker.  It  could  not  be  withdrawn  now,  because  the  objection 
has  had  its  effect  to  pi  event  consideration  at  the  time  the  measure  was 
proposed. 

Mr.  OsBORN?.  I  wish  to  state,  Mr.  Speaker,  that  I  desire  to  withdraw 
the  objection,  having  examined  the  bill  proposed. 

The  Speaker.  The  Clerk  will  report  the  bill  called  up  by  the  gentle- 
man from  Maine  [Mr.  Boutelle.] 

The  Clerk  read  as  follows: 

"A  bill  (H.  R.  10,220)  to  organize  a  hospital  corps  of  the  Navy  of  the 
United  States,  to  define  its  duties,  and  regulate  its  pay." 

******  0 

Mr.  Boutelle  of  Maine.  I  ask  unanimotls  consent  that  the  House 
resolve  itself  into  Committee  of  the  Whole  House  on  the  State  of  the 
Union  for  the  consideration  of  this  bill. 

Mr.  McMiLLiN.  Mr.  Speaker,  until  I  can  get  the  information  which 
the  report  fails  to  give  us,  I  object. 

Mr.  Boutelle  of  Maine.    The  gentleman  from  Tennessee  objects? 

The  Speaker.    The  gentleman  objects. 

May  9,  1898,  Record,  page  5281: 

INCREASE  OF  NUMBEB  OF  B^AR- ADMIRALS. 

Mr.  Boutelle  of  Maine.     It  is  not  necessary  to  move  to  reconsider 

and  lay  that  on  the  table.     Now,  Mr.  Speaker,  by  instruction  of  the 

Naval  Committee,  I  offer  the  resolution  which  I  send  to  the  Clerk's 

desk: 

******* 

"A  bill  (H.  R.  10251)  fixing  the  number  of  rear-admirals  in  the  United 

States  Navy. 

"Se  it  enacted  by  the  Senate  and  House  of  Representatives  of  the  United 
States  of  America  in  Congress  assembled.  That  the  number  of  rear-admirals 
in  the  United  States  Navy  now  allowed  by  law  be,  and  is  herebj',  increased 
from  six  to  seven,  and  this  act  shall  be  construed  and  taken  as  validating- 
and  making  in  force  and  effect  any  promotion  to  said  rank  of  rear-admiral 
in  the  United  States  Navy  made  heretofore  or  hereafter  and  during-  the 
existing  war  and  based  upon  the  thanks  of  Congress." 

Mr.  Bailey.  Mr.  Speaker,  before  unanimous  consent  is  given  I  would 
like  to  ask  the  gentleman  from  Maine  if  under  the  existing  law  Com- 
modore Dewey  would  not  be  entitled  to  promotion  by  virtue  of  the  fact 
that  the  Congress  has  thanked  him  by  name? 

Mr.  Boutelle  of  Maine.  Under  the  statute  he  would  not.  There  is 
no  rear-admiralship  to  -svhich  he  could  be  premoted,  and  the  statute 
provides  that  during  the  time  of  war  promotion  to  the  grade  of  admiral 
can  only  be  made  under  conditions  like  those  of  the  present.  To  enable 
this  promotion  to  be  made  this  bill  creates  an  additional  position  of 
rear-admiral,  to  which  this  officer,  in  the  discretion  of  the  Executive, 


may  be  appointed.  I  will  state  further  to  the  gentleman  that  this 
action  of  mine  and  the  Committee  on  Ivaval  Affairs  is  based  on  con- 
sultation with  the  executive  department,  wdth  the  Senate,  sind  our- 
selves, and  is  absolutely  essential  to  carry  out  the  purpose  which  I  infer 
is  in  the  heart  of  every  member  of  the  House,  to  enable  the  President 
to  confer  upon  Commodore  George  Dewey  the  well-earned  title  of 
rear-admiral  in  the  United  States  Navy. 

Mr.  Bailey.  Mr.  Speaker,  I  desire  to  say  that  no  title  and  no  office 
that  the  Congress  can  confer  upon  Commodore  Dewey  will  increase  the 
respect  in  which  the  American  people  hold  him.  I  am  sure  that  he 
would  rather  enjoy  the  satisfaction  that  comes  from  this  well-earned 
victory  than  to  take  any  additional  honor  and  emolument  which  Con- 
gress could  confer  upon  him.  I  do  not  intend  in  this  case  to  make 
an  objection,  for  it  is  a  peculiarly  meritorious  one;  but  I  think  we 
might  as  well  understand  now  that  the  spirit  of  patriotism  so  highly 
commendable  is  not  to  be  made  a  pretext  for  creating  a  large  numl>er 
of  important  and  highly  salaried  offices.  This  particular  case  I  shall  not 
object  to;  but  it  must  be  a  very  exceptional  case  if  I  consent  to  the 
creation  of  any  new  and  permanent  office  during  this  war. 

May  9,  1898,  Eecoed,  page  5299: 

The  committee  of  conference  on  the  disagreeing-  votes  of  the  two  Houses 
on  the  amendment  of  the  House  to  the  bill  (S.  1316)  to  provide  for  organiz- 
ing a  naval  battalion  in  the  District  of  Columbia  having  met,  after  full  and 
free  conference  have  agreed  to  recommend  and  do  recommend  to  their 
respective  Houses  as  follows: 

That  the  House  recede  from  its  amendments. 

The  Clerk  read  the  statement,  as  follows: 

"The  managers  on  the  part  of  the  House  of  tJie  conference  on  the 
disagreeing  votes  of  the  two  houses  on  the  amendments  of  the  House 
to  the  bill  S.  13-16,  an  act  to  provide  for  organizing  a  naval  battalion 
in  the  District  of  Columbia,  submit  the  following  statement: 

''The  first  amendment  of  the  Plouse  provided  that  the  battalion  con- 
templated by  the  above-named  bill  should  be  a  part  of  the  militia  already 
authorized  for  the  District  of  Columbia,  instead  of  in  addition  thereto, 
as  in  the  original  bill.  The  second  amendment  proposed  to  strike  out 
the  word  'relative,'  so  that  it  would  give  the  staff  officers  absolute 
instead  of  relative  rank.  After  full  and  free  intercbange  of  views  the 
House  conferees  agreed  to  recede  from  the  House  ai^endments,  and  as 
now  reconmiended  the  bill  stands  as  it  was  passed  by  the  Senate  " 

Mr.  HiLBOEN.  I  move  that  the  House  adopt  the  report  of  the  con- 
ferees. 

******* 

Mr.  Speaker,  I  move  the  previous  question. 
The  previous  question  was  ordered. 

The  question  being  taken  on  agreeing  to  the  conference  report,  there 
were  on  a  division  (called  for  by  Mr.  Bailey) — ayes  71,  noes  45. 
Mr.  Bailey.    I  make  the  point  of  no  quorum. 
The  Speaker  pro  tempore  proeecded  to  count  the  House. 
May  13,  1898,  Recoed,  pages  5436-5428: 


VOLXTHTnB  fIGNAIi  C0X7I. 

Mr.  Marsh.  Mt.  Speaker,  I  now  ask  unanimous  consent  to  take  from 
the  table  the  bill  (S.  4567)  to  organize  a  volunteer  signal  corps  and  put  it 
upon  its  passage. 

The  Speaker.    The  bill  will  be  read,  subject  to  the  right  of  objection. 

The  bill  was  read,  aa  follows: 

"Be  it  enacted,  etc.,  That  the  President  is  hereby  authorized  to  or- 
ganize a  volunteer  signal  corps,  for  service  during  the  existing  war, 
which  corps  shall  receive  the  same  pay  and  allowances  as  are  authorized 
by  law  for  the  Signal  Corps  of  the  Army. 

"Sec.  2.  The  volunteer  signal  corps  shall  consist  of  1  colonel,  1  lieu- 
tenant-colonel, 1  major  as  disbursing  officer,  and  such  other  officers  and 
men  as  may  be  required  not  exceeding  1  major  for  each  anny  corps,  and 
2  captains,  2  first  lieutenants,  2  second  lieutenants,  5  fi.rst-class  sergeants, 
10  sergeants,  10  corporals,  and  30  first-class  privates  to  each  organized 
division  of  troops:  Provided,  That  two-thirds  of  all  officers  below  the 
rank  of  major  and  a  like  proportion  of  the  enlisted  men  shall  be  skilled 
electricians  or  tele^aph  operators." 

The  Speaker.  Is  there  objection  to  the  present  consideration  of  this 
bill? 

Mr.  Bailey.  Reserving  the  right  to  object,  I  wish  to  ask  the  gentle- 
man in  charge  of  this  matter  what  necessity  exists  for  the  passage  of 
the  bill  at  this  time? 

Mr.  Marsh.    I  will  answer  the  gentleman  from  Texas  by  having  read 

communications  from  the  Department,  which  explain. 

******  m 

The  Speaker.  Is  there  objection  to  the  present  consideration  of  the 
bill? 

Mr.  McMiLLiN.  I  shall  not  object  to  the  consideration  of  this  bill, 
but  I  hope  where  we  are  called  upon  in  matters  of  this  importance  that 
we  will  at  least  have  a  painstaking  report  from  a  committee. 

The  Speaker.  Is  there  objection?  [After  a  pause.]  The  Chair 
hears  none. 

May  16,  1898,  Record,  page  5546: 

ADJUTANT-GENERAIi'S    DEPABTMENT. 

Mr.  Hull.  Mr.  Speaker,  I  move  to  suspend  the  rules  and  pass  Senate 
bill  4556,  to  provide  for  the  increased  volume  of  work  in  the  Adjutant 
General's  Department  of  the  Army,  now  on  the  Speaker's  table. 

The  Speaker.    The  Clerk  will  report. 

The  Clerk  read  as  follows: 

"Be  it  enacted,  etc..  That  the  President  is  authorized,  by  and  with  the 
advice  and  consent  of  the  Senate,  to  appoint  one  assistant  adjutant^g-eneral 
with  the  rank  of  lieutenant-colonel  and  one  assistant  adjutant-general  with 
the  rank  of  major:  Provided,  That  the  vacancy  created  in  the  grade  of 
colonel  by  this  act  shall  be  filled  by  the  promotion  of  officers  now  in  the 
Adjutant-General's  Department  according  to  seniority,  and  that  upon  the 
mustering  out  of  the  volunteer  forces  and  the  reduction  of  the  Regular 
Army  to  a  peace  basis  no  appointments  shall   be  made  in  the  Adjutant- 


11 

General's  Department  until  the  number  of  officers  in  each  g^ade  In  that 
Department  shall  be  reduced  to  the  number  authorized  by  the  law  in  force 
prior  to  the  passage  of  this  act." 

Mr.  DockEiiT.    Mr.  Speaker,  I  demand  a  second. 

Mr.  Hull.  I  ask  unanimous  consent  that  a  second  may  be  considered 
as  ordered 

The  Speakeb.  The  gentleman  from  Iowa  asks  unanimous  consent 
that  a  second  may  be  considered  as  ordered.    Is  there  objection? 

Mr.  Slatden.  I  object,  Mr.  Speaker.  I  want  to  say  a  word  in  ex- 
planation of  that 

May  18,  1898,  Recokd,  pa^ee  5609-5614: 

PHOTOGRA.PHING  GUNS  OF  THE  UNITED   STATES. 

Mr.  Hull.  Mr.  Speaker,  I  ask  unanimous  consent  for  the  present 
consideration  of  the  bill  (H.  R.  9553)  in  reference  to  photographing 
any  guns  which  would  give  the  strength  of  any  fortification  of  the 
United  States. 

The  Clerk  read  as  follows: 

"Be  U  enacted,  etc.,  That  it  shall  be  unlawful  for  any  person  or  persons, 
corporation  or  association,  to  print,  publish,  photograph,  or  reproduce  by 
any  process  whatsoever,  so  as  to  make  public  in  any  wise,  any  information 
giving  the  power  of  the  guns  or  the  strength  of  any  fortification  of  the 
United  States. 

"Sec.  2.  That  any  person  convicted  of  the  offense  charged  in  the  first  sec- 
tion shall  be  deemed  guilty  of  a  felony  and  punished  by  imprisonment  for 
not  more  than  ten  years  or  by  a  fine  of  not  more  than  $25,000,  or  both,  in 
the  discretion  of  the  court." 

After  much  opposition,  coming  principally  from  Democrats  and 
Populists^  Mr.  Hay  of  Virginia  (Democrat)  said: 

I  say  that  this  is  a  common-sense  proposition.  I  say  that  it  is  one 
that  ought  to  be  supported,  and  it  does  seem  to  me  to  be  a  curious  fact 
that  no  bill  can  be  reported  here  which  looks  to  the  real  defense  of 
the  country  and  to  the  real  purpose  of  defeating  the  foe  with  whom 
we  are  contending,  without  adverse  criticism  being  made,  and,  in  my 
humble  judgment,  that'%ort  of  criticism  which  ought  to  have  no  weight 
with  the  members  of  the  House. 

The  bill  was  recommitted. 

May  24,  1898,  Recobd,  pages  5767-5768: 

HOSPITAL  CORPS  OF  UNITED  STATES  NAVY. 

Mr.  Boutelle  of  Maine.  Mr.  Speaker,  I  desire  to  call  up  the  bill 
(H.  R.  10220)  to  organize  a  hospital  corps  of  the  Navy  of  the  United 
States,  to  define  its  duties,  and  regulate  its  pay. 

The  bill  was  read  as  follows: 

''Be  it  enacted,  etc., 

«  4c  *  4t  *  *  * 

Mr.  Underwood.    I  demand  the  regular  order,  Mr.  Speaker. 
Mr.  Boutelle  of  Maine.    Does  the  gentleman  object  to  the  considera- 
tion of  this  bill?    Mt.  Speaker,  I  desire  the  question  put  to  the  Houe«- 


12 

The  Speaker.  The  gentleman  from  Alabama  demands  tne  regular 
order,  which  is  equivalent  to  an  objection. 

Mr.  Payne.     I  desire  the  Chair  to  lay  before  the  House  the  bill 

Mr.  BouTELLE  of  Maine.  I  have  one  more  bill  I  desire  the  House  to 
act  on — a  bill  of  gi-eat  exigency. 

Mr.  Payne.  But  the  gentleman  from  Alabama  [Mr.  Underwood] 
has  demanded  the  regular  order. 

Mr.  BouTELUE  of  Maine.    On  that  bill. 

Mr.  Underwood.  I  do  not  care  to  insist  on  the  regular  order  gen- 
erally.   I  objected  to  that  particular  bill. 

June  1,  1898,  Kecord,  page  6035: 

POST    QUARTERMASTER-SERGEANTS    OF    THE    UNITED     STATES 

ARMY. 

Mr.  Hull.  Mr.  Speaker,  I  ask  unanimous  consent  for  the  imme- 
diate consideration  of  the  bill  H.  li.  10051,  to  increase  the  number  of 
post  quartermaster-sergeants  of  the  United  States  Army. 

The  Clerk  read  the  bill,  as  follows: 

"Be  it  enacted,  etc.,  That  the  number  of  post  quartermaster-sergeants 
of  the  Army  be  increased  by  the  addition  of  twenty-five  post  quarter- 
master-sergeants, to  be  appointed  by  the  Secretary  of  War  in  the  manner 
now  provided  for  by  law." 

The  Speaker.  Is  there  objection  to  the  present  consideration  of  the 
bill  which  has  been  reported? 

Mr.  Simpson.     Eeserving  the  right  to  object,  I  hope  we  shall  have 

some  explanation  of  it. 

Mr.  McMiLLiN.    I  ask  that  the  report  be  read. 

******* 

The  Speaker,  Is  there  objection  to  the  present  consideraMon  of  the 
bill? 

Mr.  Underwood.  Mr.  Speaker,  in  consideration  of  the  importance 
of  these  bills,  and  that  I  do  not  think  they  are  of  such  urgent  nature 
as  to  need  to  be  considered  at  once,  believing  tthat  they-  ought  to  be 
considered  in  the  regular  way  and  not  by  unanimous  consent  when 
there  is  evidently  no  quorum  of  the  House  present,  I  shall  be  compelled 
to  demand  the  regular  order. 

The  Speaker.    The  gentleman  demands  the  regular  order. 

June  16,  1898,  Record,  page  6726: 

ORDER   or   BUSINESS. 

Mr.  Hull.  Mr.  Speaker,  I  ask  unanimous  consent  that  Saturday 
next  be  set  apart  for  the  consideration  of  bills  from  the  Committee  on 
Military  Affairs  which  have  received  the  unanimous  support  of  the  com- 
mittee. There  are  four  or  five  bills  that  ought  to  be  considered  at  an 
early  day.  One  pertains  to  the  Inspector-General's  Department,  one 
to  the  Ordnance  Department,  one  to  the  Engineer's  Department,  and 


13 

another  bill  that  \^11  fix  the  statua  «f  ttie  chaplains  oi  th«  Tolnnteer 

regiments.    These  bills  ought  to  be  considered  and  passed  this  week. 

*  *  *  :lt  tL  tti  i(f 

Mr.  Hull.    I  have  stated  what  the  bills  relate  to. 

Mr.  SuLZER.    These  bills  are  all  nnanimous  reports  of  the  committee^ 

Mr.  Gaines.  Mr.  Speaker,  I  think  it  is  no  more  than  right  and  just 
to  the  House  that  these  bills  should  be  printed  before  unanimous  con- 
sent is  asked  for  consideration. 

Mr.  Hull.  They  are  already  printed.  Mr.  Speaker,  I  ask  unanimous 
consent  that  next  Tuesday  be  assigned  for  the  consideration  of  these 
bills  unanimously  reported  by  the  Committee  on  Military  Affairs. 

Mr.  Undeewood.     I  object. 

June  16,  1898,  Kecoed,  pages  6740-6741: 

Mr.  Hull.  Mr.  Speaker,  I  want  again  to  ask  unanimous  consent  that 
next  Tuesday  be  set  apart  for  the  consideration  of  the  following  bills, 
reported  unanimously  by  the  Committee  on  Military  Affairs 

Mr.  Maquiee.    What  time? 

Mr.  Hull.    The  bill  H.  R.  10424. 

Mr.  McMillin.  Is  that  the  same  request  that  was  made  this  mom- 
ing? 

Mr.  Hull.    Yes,  sir. 

Mr.  Bartlett.    I  call  for  the  regular  order,  Mr.  Speaker. 

Mr.  Hull.  I  hope  the  gentleman  will  let  us  fix  a  day  for  the  con- 
sideration of  these  bills;  and  I  want  to  read  the  numbers  of  them,  so 
that  members  may  know  what  they  are. 

Mr.  Gaines.  The  reason  why  I  asked  the  question  was  because  my 
colleague  [Mr.  Cox]  has  been  absent  for  ten  days,  so  that  if  any  bills 
have  been  reported  since  that  time,  they  have  not  been  reported  unani- 
mously. 

Mr.  Hull.  Some  of  these  bills  were  agreed  to  since  he  left  and 
others  before  he  left. 

Mr.  Baetlett.    I  call  for  the  regular  order. 

June  20,  1898,  Recoed,  page  6923: 

«  *  *  «  *  *  • 

Mr.  Hull.  I  ask  unanimous  consent  that  Thursday,  the  23d  instant, 
be  set  apart  for  the  consideration  of  bills  reported  from  the  Committee 
on  Military  Affairs,  and  that  only  bills  shall  be  considered  which  the 
committee  by  a  vote  have  instructed  the  chairman  to  call  up  for  con- 
sideration. 

The  Speakee  pro  tempore.  The  gentleman  from  Iowa  asks  unanimous 
consent  for  the  present  consideration  of  a  resolution  which  will  be  re- 
ported by  tiie  Clerk. 

Mr.  Babtlbtt.  Reseorving  tiie  right  to  object — I  did  not  hear  the 
resolution.  Let  it  be  read. 

Th«  SpiAun  pro  tenmore.    Certainly. 

TIm  Clerk  read  as  follo<w8: 


14 

"Resolved,  That  ThnrsdAy,  the  23d  instant,  be  iet  apart  for  the  con- 
sideration of  bills  reported  from  the  Committee  on  Military  Affairs,  and 
that  only  bills  shall  be  considered  which  the  committee  by  a  vote  have 

instructed  the  chairman  to  call  up  for  consideration." 

*  *  «  *  *  *  * 

Mr.  Cannon.    Well,  Mr.  Speaker,  I  will  have  to  antagonize  that. 

Mr.  Babtlett.    If  it  is  to  be  granted  by  unanimous  consent,  I  object. 

Mr.  Mahon.  Mr.  Speaker,  we  are  willing  to  give  up  Friday  for  the 
consideration  of  private  business,  and  I  ask  that  next  Friday  may  be 
substituted  for  to-day  for  the  suspension  of  the  rules,  and  that  same 
right  shall  be  given  to  suspend  the  rules  on  Friday  as  to-day. 

Mr.  Under  WOOD.     I  object. 

June  23,  1898,  Recobd,  pages  7031,  7033: 

BUSINESS  OF  THE  COMMITTEE  ON  MILITARY  AFFAIRS. 

Mr.  Hull.  Mr.  Speaker,  I  wish  to  ask  unanimous  consent  again  to 
fix  next  Tuesday  for  the  consideration  of  bills  reported  from  the  Com- 
mittee on  Military  Affairs,  and  I  will  be  very  glad  to  read  the  numbers 
of  the  bills  and  have  them  placed  in  the  Record,  so  that  all  members 
may  know  what  they  are  and  what  the  commitee  proposes  to  call  up 
at  that  time.  They  are  reported  from  the  Committee  on  Military  Affairs 
and  are  mainly  for  the  better  administration  of  the  Army  during  present 
conditions;  they  are  recommended  by  the  Secretary  of  War  and  are 
necessary  for  the  successful  prosecution  of  the  business  of  the  wax. 
Their  passage  is  imperatively  demanded  in  the  interest  of  both  effi- 
ciency and  economy. 

*  *  it  *  *  *  * 

Mr,  Underwood.  The  gentleman  from  Iowa  does  not  un(Jerstand 
the  position  I  take,  which  is  that  during  war  excitement  matters  like 
these  are  brought—- — 

Mr.  Steele.  If  we  can  Lave  an  agreement,  that  is  all  right;  but  I 
do  object  to  taking  the  forenoon  in  order  to  find  out  whether  anybody 
is  going  to  object.     It  becomes  a  very  puerile  business. 

Mr.  Hay.  I  want  to  make  a  suggestion  to  the  gentleman  from  lowa^ 
if  the  gentleman  will  permit  me.     My  suggestion  is  this 

Mr,  Faris.  Mr.  Speaker,  I  rise  to  a  point  of  order.  We  can  not 
hear. 

The  Speaker.  Is  there  objection  to  the  consideration  of  the  bills 
named  by  the  gentleman  from  Iowa  on  Tuesday,  after  the  reading  of  the 
Journal? 

Mr,  Underwood,  If  we  can  not  come  to  an  agreement  with  the 
gentleman  from  Iowa,  I  will  object. 

Mr.  Httll.  I  can  not  take  those  bills  out,  because  I  am  informed,  and 
the  whole  investigation  made  shows,  that  tbese  two  corps  of  the  Army 
need  the  increase  badly  now,,  and  would  need  it  badly  if  the  war  should 
close  to-morrow. 

Mr.  Underwood.  Will  the  gentleman  guarantee  that  he  wiU  give 
us  ample  opportunity  on  Tuesday  to  debate  the  bills  and  offer  amead- 
meats? 


Kr.  Henderson.  That  ought  to  be  d^moit.    Tli«a«  ougbt  t*  bt  tke 

fullest  opportunity  for  discussion, 

Mr.  Hull.    Of  course;  I  will  do  that. 

Itr.  Mahxnt.  I  would  like  the  chainnain  to  state  wiiat  he  means  by 
"ample  time  for  diecuBsion."  Is  there  not  a  likelihood  that  under  this 
arrangement  some  of  these  bills  may  be  debated  to  sudh  an  extent  that 
the  others  will  not  be  reached? 

Mr.  Steele.    Mr.  Speaker,  I  call  for  the  regular  order. 

Mr.  DociEKT.  I  assume  that  the  gentleman  will  giye  opportunity 
for  full  discus&ion. 

Mr.  Steele.    I  withdraw  the  call  for  the  regular  order. 

The  Speaiek.    Is  there  objection? 

Mr.  Codding  and  Mr.  Baird  objected. 

But,  Mr.  Speaker,  all  these  were  not  in  my  mind  at  the  date  of  the 
speech  complained  of,  but  I  think  they  were  in  the  mind  of  the  gentle- 
man from  Maine  at  the  time  of  his  speech,  but  I  confess  I  had  in  my 
mind  the  vote  of  the  Democrats  on  the  revenue  bill,  and  here  we  might 
as  well  call  things  by  their  right  names.  The  war-revenue  measure  was 
a  measure  to  provide  money  to  pay  for  the  cost  of  the  war  in  all  the 
branches  thereof.  It  was  a  patriotic  measure,  demanded  by  the  country 
and  indispensable  to  the  maintenance  of  the  honor  of  our  country  and 
the  success  of  our  Army.  The  bill  was  reported  from  the  Committee  ooi 
Ways  amd  Means  on  the  26th  day  of  April,  three  days  after  the  declara- 
tion of  war,  and  debate  proceeded  until,  as  appears  by  the  Record,  page 
4855,  a  vote  was  taken,  and  on  the  passage  of  that  bill  5  Democrats 
voted  in  the  affirmative  and  130  Democrats  and  their  allies  voted  "no." 

On  the  preceding  page  of  the  Record  it  will  appear  that  on  a  motion 
to  recommit  134  Democrats  voted  to  kill  the  bill  and  170  Republicans 
voted  against  that  unfriendly  proposition.  Later  on  this  same  revenue 
bill  came  back  to  the  House  remodeled  in  some  respects,  and  passed  by 
the  Senate.  The  whole  question  of  amendment  had  been  fought  out 
in  the  Senate  and  in  conference  committee,  and  on  that  day  the  whole 
question  came  to  a  vote  in  the  House,  and  it  is  true  to  say  that  on 
that  vote  turned  the  whole  question  of  war  or  peace,  and  on  that 
question  hung  every  hope  of  supplying  the  Army,  and  on  that  vote  149 
Republicans  and  5  Democrats  voted  in  the  affirmative,  and  106  Demo- 
ei-ats  and  their  allies  voted  "no." 

During  the  progress  of  this  controversy  there  were  propositions  raised 
by  the  Democrats  to  raise  some  money  for  the  use  of  the  Army  by  a 
taxation  of  incomes,  but  those  propositions  were  not  important,  for  had 
their  income  propositions  been  accepted  it  would  have  been  but  a  com- 
paratively trifling  addition  to  the  gross  amount  of  revenue  necessary 
for  the  purpose  of  the  Government,  so  that  the  record  stands  just  this 
way:  A  majority  of  the  House  of  Representatives  being  Republican 
provided  a  measure  amply  sufficient  to  carry  on  the  war,  pay  the  soldiers, 
provide  for  pensions  and  the  defenses  of  the  country,  and  the  Democrats 
voted  "no." 

After  the  measure  had  gone  through  a  long  and  weary  consideration, 
and    after    making    compromise    after     compromise     and     concessioii 


16 

after  concession,  and  a  measure  had  been  agreed  npon — the  best  and 
only  thing  that  could  be  done,  as  everybody  knows,  with  the  exception 
of  five  or  six — these  Democratic  members  voted  "no"  to  every  propo- 
sition, and  to  that  I  referred  in  my  Columbus  speech,  and  to  that  1 
adhere.  It  will  not  do  to  say  that  the  Democrats  were  ready  to  have 
voted  for  a  provision  for  the  Army  if  they  could  have  had  certain  amend- 
ments; they  had  had  all  these  amendments  offered  and  they  had  all 
failed.  Shall  the  question  of  free  and  unlimited  coinage  of  silver  be 
permitted  now  to  stand  across  the  pathway  of  the  great  interest  of  the 
Army?  Yet  upon  that  question  the  Democratic  party  here  took  its 
stand,  and  it  will  be  held  responsible.  I  do  not  believe  that  the  Demo- 
crats of  this  country  indorse  this  record,  and  I  do  not  believe  that  they 
will  indorse  it  in  November. 

Now,  there  was  a  proposition  pending  in  the  House  to  permit  the 
soldiers  in  the  field  to  vote  for  Congressmen.  It  had  the  solid  vote  of 
the  Eepublicans  in  the  House  and  a  few  Democrats  joined,  but  the 
bulk  of  the  Democratic  party,  led  by  its  distinguished  leader,  fought 
it  to  the  bitter  end,  and  would  have  defeated  it  had  they  had  votes 
enough.  It  was  finally  defeated  in  the  Senate  by  the  Democratic  Sen- 
ators, and  in  this  way  250,000  men,  just  as  capable  of  voting  intelli- 
gently as  any  member  of  this  House,  are  deprived  of  voting  for  Con- 
gressmen. 

They  are  fighting  the  battles  of  their  country  out  in  the  Jungles  of 
Cuba  and  far  out  in  the  seas  of  the  Orient,  but  the  Democratic  party 
in  Congress  refuses  them  the  right  to  vote.  We  shall  be  permitted  to 
charge,  and  we  will  charge,  as  I  now  charge,  that  they  were  refused  the 
right  to  vote  by  the  Democrats.  So,  Mr.  Speaker,  I  am  justified  by 
record  in  all  that  I  said.  The  last  hours  of  the  House  witnessed  the  oft- 
repeated  appeal  of  the  chairman  of  the  Military  Committee  for 'action, 
by  the  House,  on  important  bills,  but  his  appeal  was  in  vain. 

It  will  be  said  that  the  Democratic  members  would  have  voted  for 
the  annual  and  special  appropriation  bills,  but  what  would  it  have  bene- 
fited the  countr.y  to  have  made  appropriations  with  no  money  to  pay 
them?  The  vital  support  of  the  Administration  was  the  war-revenue 
bill.  It  will  take  $200,000,000  more  than  the  taxes  to  carry  us  to  the 
Ist  of  January  next,  and  four  hundred  millions  if  the  war  is  to  last  a 
year. 

Could  we  have  put  $500,000,000  of  taxation  upon  the  people  in  a 
single  year  in  addition  to  the  tax  now  existing  it  would  have  crushed 
the  life  out  of  the  industries.  We  took  care  that  the  old  cry  of  idle 
silver  should  be  heard  no  more  in  the  land,  for  we  have  provided  for 
the  coinage  of  the  surplus  silver  in  the  Treasury. 


(No.  13.) 


ISSUE    OP 


$150,000,000 

Additional  Treasury  Notes 


THE  TELLER  RESOLUTION 

TO   COIN  SILVER  DOLLARS  ON   PRIVATE  ACCOUNT  AND 
PAY  THE  NATIONAL  BONDS  WITH  THEM 


SF>BECHES     OF= 

HON.    ICNUXe     NELSON 
of  Minnesota 


In  the  Senate  of  the  United  States,  January  29  and  May  27.  »898 


UNITED  STATES  BONDS  PAYABLE  IN  SILVER 
DOLLARS. 

The  Senate  havirg  under  consideration  the  concurrent  resolution  (S.  R, 
2:1)  declaring  United  States  bonds  payable  in  silver  dollars — 

Mr.  NELSON  said: 

Mr.  President:  I  offer  an  amendment  to  the  pending  resolution,  and  in 
connection  with  it  I  desire  to  submit  a  few  statements.  When  a  witness  is 
sworn  in  court  he  is  not  only  sworn  to  tell  the  truth,  but  the  whole  truth 
and  nothing  but  the  truth.  So  with  the  resolution  that  Is  now  pending 
before  the  Senate.  It  does,  to  a  certain  extent,  declare  the  technical  truth, 
but  not  the  whole  of  it  by  a  great  deal. 

It  is  true  that  under  existing  laws,  technically,  the  Government  can  pay 
its  obligations  in  every  instance,  except  where  the  law  otherwise  provides, 
in  either  gold  or  silver.  13ut  coupled  with  that  right  is  a  duty — a  duty  en- 
joined upon  the  (jovernment — to  maintain  the  parity  of  the  two  metals. 

This  duty  rests  upon  two  grounds — a  statutory  mandate  and  changed 
conditions  in  the  relative  value  of  the  two  metals.  The  Government  has 
the  technical  right  to  pay  its  obligations  in  gold  or  silver,  but  coupled  with 
that  right  is  the  duty  always  to  maintain  the  parity  of  the  two  metals.  I 
can  pay  my  debt  in  silver  or  gold  if  I  have  not  obligated  myself  to  pay  in 
gold,  but  I  have  not  the  duty  to  perform  that  the  Government  has — that  of 
maintaining  the  parity.  The  Government  has  the  right  to  pay  in  either 
silver  or  gold,  but  coupled  with  that  right  is  the  duty  enjoined  upon  it  by 
law — by  two  existing  laws,  that  of  1890  and  1893 — under  all  conditions  to 
maintain  the  parity  in  value. 

IN    1878    THE    SILVER    IN    A    SILVER    DOLLAR    WAS    WORTH    90 

CENTS  IN  GOLD. 

Senators  have  stated  on  this  floor  that  the  conditions  are  now  the  same 
as   they   were   when   this    resolution    was   passed   in    1878.     Mi'.    President, 

(3) 


neither  as  a  matter  of  fact  nor  as  a  matter  of  law  is  that  true.  As  a  matter 
of  fact,  in  1878,  when  the  resolution  was  passed,  the  silver  in  the  silver 
dollar  was  worth  about  '90  cents  in  gold.  To-day  it  is  worth  only  44  or  45 
cents  in  gold.  At  that  time  we  had  no  law  on  our  statute  book  requiring 
the  Government  to  maintain  the  parity  of  the  metals.  That  was  not  placed 
in  the  law  of  1878.  It  was  not  in  existence  at  the  time  that  resolution  was 
passed. 

In  1890,  when  the  so-called  Sherman  law,  providing  for  the  extensive 
purchase  of  silver,  was  passed,  the  duty  of  maintaining  the  parity  was  first 
enjoined  in  that  law.  Seme  of  the  Senators  who  aided  in  passing  that  law 
are  now,  in  effect,  seeking  by  this  resolution  to  destroy  the  effect  of  the 
parity  requirement.    This  is  the  provision  of  the  law  of  1890: 

That  upon  the  demand  of  the  holder  of  any  of  the  Treasury  notes  herein 
provided  for,  the  Secretary  of  the  Treasury  shall,  under  such  regulations 
as  he  may  prescribe,  redeem  such  notes  in  gold  or  silver  coin,  at  his  discre- 
tion, it  being  the  established  policy  of  the  United  States  to  maintain  the 
two  metals  on  a  parity  with  each  other  upon  the  present  legal  ratio,  or 
such  ratio  as  may  be  provided  by  law. 

Here  you  have  a  statutory  declaration  of  duty,  a  mandatory  duty,  laid 
upon  the  Government  in  connection  with  the  monetary  legislation  that  was 
procured  at  the  instance  of  the  advocates  of  free  silver  at  that  time.  My 
objection  to  the  resolution  in  the  present  condition  is  that  while  it  an- 
nounces the  technical  right  of  the  Government  to  pay  in  either  metal,  it 
utterly  ignores  the  duty  of  maintaining  the  parity.  This  same  duty  was 
reiterated  and  enjoined  in  the  act  of  1893.  If  the  Government  adheres  to 
the  duty  laid  down  in  both  of  these  acts,  and  maintains  the  parity  of  the 
two  metals,  then  it  will  make  no  practical  difference  in  which  coin  the 
bonds  are  paid. 

If  this  resolution  is  correct  it  does  not  go  far  enxsugh.  If  out  bonds  are 
payable,  as  the  resolution  says,  so  are  our  greenbacks  and  so  are  the  notes 
issued  under  the  act  of  1890.  If  you  add  the  amendment  which  I  introduced 
the  other  day,  and  shall  offer  to-day,  and  attach  it  to  the  resolution,  in 
legal  effect  the  two  together  would  be  exactly  the  language  of  the  act  of 
1890,  giving  the  Secretary  of  the  Treasury  the  option  to  pay  the  Treasury 
notes  issued  "under  that  act  either  in  gold  or  silver,  with  the  condition  that 
it  was  always  the  duty  of  the  Government  to  maintain  the  parity  of  the 
two  metals.  Unless  you  object  to  the  maintenance  of  the  parity — unless 
you  aim  by  indirect  means  to  destroy  that  parity — you  can  certainly  have 
no  objection  to  the  amendment  to  which  I  refer. 


"I  CAN  NOT  PAY  YOTJ  IN  GOLD." 

Let  me  also  call  attention  to  the  fact  that  whenever  the  Government  fails 
in  its  duty  to  maintain  the  parity  it  is  not  only  the  bondholders  who  suflEer, 
but  every  one  of  us  who  holds  any  of  Uncle  Sam's  money  except  gold  coin. 
If  the  Government  of  the  United  States,  when  a  creditor  comes  and  de- 
mands payment  of  any  of  its  obligations,  whether  it  be  a  bond  or  a  Treasury 
note,  shakes  its  head  and  says  "I  can  not  pay  you  in  gold;  that  is  the 
dearest  metal;  I  will  pay  you  in  the  cheaper,  silver" — whenever  the  Govern- 
ment assumes  that  attitude  and  refuses  to  pay  either  a  greenback,  a  Sher- 
man note,  or  a  bond  to  the  holder  in  gold,  when  he  demands  it,  that  moment 
and  in  that  act  the  Government  discredits  its  silver  money  and  says  it  is 
liot  as  good  as  gold,  and  that  brings  us  on  a  silver  basis  immediately,  when 
silver  will  circulate  on  its  bullion  value. 

What  is  the  difference  between  our  silver  dollar  and  the  Mexican  silver 
dollar?  Down  in  Mexico  they  have  a  silver  dollar  with  a  little  more  silver 
in  it  than  ours.  There  they  have  the  free  coinage  of  silver.  Yet  that  silver 
dollar  is  worth  only  45  cents  in  g'old,  be^^ause  there  is  nothing  back  of  it. 
It  circulates  upon  its  value  as  silver  bullion  merely. 

Our  silver  dollar  is  worth  100  cents  in  gold.  Why?  Because  the  Gov- 
ernment of  the  United  States,  our  law,  and  our  policy,  and  our  practice 
stand  back  of  it  and  make  that  silver  dollar  as  good  as  a  gold  dollar.  By 
standing  pledged  to  maintain  the  parity,  by  being  ready  to  redeem  all  our 
paper  in  gold,  and  by  receiving  the  silver  dollar  in  payment  of  all  public 
dues  as  equivalent  to  a  gold  dollar,  we  maintain  the  parity.  Our  American 
silver  dollar  can  say  what  the  Mexican  silver  dollar  can  not  ^y,  "I  know 
that  my  redeemer— Uncle  Sam— liveth." 

If  our  friends  on  the  other  side  seek  to  pass  this  resolution  without 
providing  that  the  Government  shall  maintain  the  parity,  then  they  are 
indirectly  seeking  to  bring  about  a  state  of  silver  monometallism,  though 
this  may  not  be  their  avowed  purpose. 

Mr.  President,  if  it  were  only  the  bondholders  they  would  injure,  thai 
would  be  bad,  but  not  the  worst  of  it.  But  the  bondholders  are  not  the 
only  ones  who  would  suffer.  Whenever  you  cut  down  our  currency  by  such 
methods,  whenever  you  Mexicanize  our  silver,  you  not  only  punish  the  bond- 
holders, but  punish  every  citizen  in  the  United  States  who  has  any  of  our 
currency,  except  gold.  Every  dollar  of  greenbacks,  every  dollar  of  Sherman 
notes,  every  silver  dollar,  and  every  national-bank  note  is  at  that  moment 
cut  down  to  the  bullion  value  of  silver. 


ONLY   $850,000,000   BONDS    OUTSTANDING. 

There  are  only  $850^000,000  bonds  outstanding,  while  our  greenbacks  and 
Sherman  notes,  our  silver  and  silver  certificates,  and  our  national-bank 
notes  exceed,  in  the  ag-gregate,  over  $1,100,000,000,  nearly  all  ©f  it  out- 
standing and  in  circulation.  To  put  us  on  a  silver  basis,  you  would  not 
onl}'  reduce  the  value  of  the  bonds  more  than  one-half,  but  also  the  value 
of  all  this  currency,  a  loss  that  would  reach  every  holder  of  this  money. 
And,  in  addition  to  all  this,  j'ou  would  further  contract  the  currency,  by 
driving  our  gold  money  abroad  and  out  of  circulation. 

You  not  only  punish  the  bondholders — if  that  was  the  extent  of  your 
punishment,  though  unjust,  we  might  stand  it — but  j'ou  strike  at  every 
man  who  has  any  of  the  money  of  this  Government  in  his  possession.  You 
not  only  strike  him  down,  but  you  reduce  the  wages  of  the  laboring  man; 
you  reduce  the  value  of  saving  deposits  and  of  all  outstanding  money  ob- 
ligations. And  thus  you  would  bring  about  a  public  calamity  much  more 
serious  than  even  you  contemplate  or  intend. 

Mr.  President,  I  am  not  here  shedding  tears  for  the  bondholders,  but  I 
am  here  to  protect  the  American  people  from  the  calamity  of  silver  mono- 
metallism. 


WAYS  AND   MEANS  TO   MEET  WAR  EXPENDITURES. 

The  Senate,  as  in  Committee  of  the  Whole,  having  under  consideration 
the  bill  (H.  R.  10100)  to  provide  ways  and  means  to  meet  war  expenditures — 

Mr.  NELSON  said: 

Mr.  Pkesident:  I  propose  for  a  few  moments  to  discuss  the  proposed 
issue  of  an  additional  $150,000,000  of  greenbacks — or  United  States  Treasury 
notes.  I  regard  that  as  one  of  the  most  important  matters  involved  in  v'he 
pending  bill. 

The  first  issue  of  United  States  Treasury  notes  was  under  the  act  of 
February,  1862.  The  highest  amount  outstanding  was  in  1864,  when  it 
amounted  to  $447,300,203.  Since  1878  the  net  amount  outstanding  has  been 
$.'!46,681,016.  There  has  been  issued  and  reissued  in  all  a  total  of  $2,876,020,- 
129,  or  a  quantity  equal  to  nearly  8.3  times  the  amount  outstanding  at  any 
time  since  1878.  These  notes  are  receivable  in  payment  of  all  taxes  and 
public  dues  except  customs.  Prior  to  July  1,  1879,  $1,151,572,362  of  these 
notes  were  redeemed  by  being  received  in  payment  of  public  dues  and  taxes. 


Since  June  30,  1879,  $1,477,766,753  have  been  redeemed,  but  of  this  redemp- 
tion $516,030,273  have  been  redeemed  on  demand  by  direct  payment  of  gold 
to  the  holder.  Of  this  direct  gold  redemption,  only  $43,310,896  was  made 
between  July  1,  1879,  and  July  1,  1892;  and  from  July  1,  1897,  to  the  present 
time  only  $21,523,345  have  been  redeemed. 

But  for  the  period  of  five  years  extending  from  July  1,  1892,  to  July  1, 
1897,  $451,196,132  was  directly  redeemed,  on  demand  of  the  holders,  in 
gold.  An  average  of  $90,000,000  per  year,  or  only  $10,000,000  less  than  the 
gold  redemption  fund,  thus  necessitating  its  duplication  once  a  year  in 
that  time.  During  this  period  of  hard  times,  within  the  memory  of  all,  the 
Treasury  was  treated  as  the  reservoir,  and  the  greenbacks  as  the  instru- 
ment, for  satisfying  the  excessive  gold  demand  of  our  people.  This  exces- 
sive and  unusual  gold  withdrawal  occurred  chiefly  from  two  causes.  In 
the  first  instance  it  arose  from  the  fear  that  the  excessive  silver  infljition 
under  the  act  of  1890  might  destroy  the  ability  of  the  Government  to  main- 
tain the  parity  of  our  silver  currency  with  gold.  This  fear  of  coming  to  a 
silver  basis  led  many  of  our  people  to  seek  gold  for  purposes  of  hoarding. 

GOLD  DEMAND  TO   SATISFY  AN  ADVERSE   BALANCE  OF   TRADE. 

In  the  next  place  the  gold  demand  came,  to  a  large  extent,  for  the  pur- 
pose of  satisfying  an  adverse  balance  of  trade.  And  by  this  I  mean  an 
adverse  balance  upon  all  our  transactions  with  foreign  countries,  whether 
arising  from  commerce  or  credits;  for  all  international  balances  are  settled 
and  adjusted  with  gold.  Since  July  1,  1897,  our  shipment  of  breadstuflPs 
and  other  products  abroad  at  high  prices  and  in  great  quantities  has  been 
so  large  that  it  has  kept  the  balance  of  trade  in  our  favor  and  brought  us 
a  constant  inflow  of  gold,  which  would  have  been  even  greater  but  for  the 
credit  balance  against  us  in  Europe. 

This  large  inflow  of  gold  from  this  cause  has  reduced  the  gold  redemp- 
tion of  our  greenbacks  to  well-nigh  a  nominal  basis.  But  the  conditions  of 
the  past  year  have  been  so  unusually  favorable,  especially  in  the  matter  of 
breadstuffs,  that  we  can  not  well  count  on  their  permanent  continuance 
nor  make  th«m  the  basis  of  our  calculation  for  the  maintenance  of  the  gold- 
redemption  fund.  CautioH  and  prudence  should  rather  lead  us  to  base  our 
calculation  on  the  recurrence  of  such  times  and  conditions  as  we  labored 
under  from  1892  to  1897. 

Our  Treasury  notes  are  not  only  money  of  a  certain  kind,  but  they  are 
also  due  bills,  evidences  of  demand  loans.     As  mere  loans  they  are  not  of 


very  much  help  or  benefit,  unless  redemption  is  temporarily  stayed  as 
during  the  late  war.  If  the  holder  can  demand  payment  at  any  time,  the 
Government  must  of  necessity  always  keep  on  hand  an  idle  fund  for  re- 
demption purposes.  For  it  occupies,  as  a  mere  debtor,  the  relation  to  the 
Treasury  notes  that  a  bank  does  to  its  depositors  or  its  bill  holders.  It 
can  not  redeem  by  giving  new  notes  of  a  similar  kind,  for  that  would 
simply  be  Micawber-like  to  give  one  due  bill  for  another. 

THE  GOVEBNMENT  MUST  OF  NECESSITY  REDEEM  IN  COIN. 

The  Government  must  of  necessity  redeem  in  coin,  and,  technically,  it 
can  redeem  in  either  coin — gold  or  silver.  If  both  metals  were  intrinsically 
on  "a  parity  with  each  other,  then  the  Government  would  be  justified  in 
availing  itself  of  the  technical  right  to  pay  in  either  metal.  But,  com- 
mercially and  intrinsically,  silver  is  far  below  a  parity  with  gold,  and 
hence  arises  the  duty  enjoined  upon  the  Government,  both  by  law  and 
morale,  of  maintaining  our  silver  money  on  a  parity  with  gold. 

The  holder  of  a  Treasury  note  is  not  only  interested  in  having  his  note 
redeemed,  but  he  is  also  interested  in  having  it  redeemed  in,  and  kept  up  to, 
the  value  of  our  best  money,  that  which  is  intrinsically  highest — gold — 
for  that  is  of  necessity  and  in  the  very  nature  of  the  case  the  only  true 
standard  of  parity.  To  maintain  this  jjarity  the  Government  must  always 
be  ready  and  able  to  redeem  its  notes  in  that  money — gold— which  is  in- 
trinsically the  most  valuable,  if  demanded.  If  the  Government  refuses  to 
redeem  in  its  best  money  when  demanded,  it  by  that  very  act  discredits  its 
intrinsically  cheaper  money;  and  if  it  insists  on  redeeming  in  the  cheaper 
money  it  in  effect  makes  that  the  standard  and  level  of  value,  and  the 
monetary  parity  of  the  two  metals  is  gone. 

The  issue  of  these  demand  Treasury  notes,  then,  entails  a  double  duty 
and  a  double  burden  upon  the  Government:  First,  the  duty  and  burden  of 
a  banker  to  its  depositors  or  bill  holders  of  always  maintaining  an  ample 
redemption  fund  on  hand;  second,  the  duty  and  burden,  as  the  financial  and 
fiscal  agent  of  our  nation,  to  maintain  these  notes  as  money  on  a  parity 
with  our  best  money — gold.  In  other  words,  the  Government  must  main- 
tain these  Treasury  notes  both  as  due  bills  and  as  money,  and  to  maintain 
them  as  such  it  must  always  have  on  hand  an  ample  gold  redemption  fund. 

But  both  of  these  burdens  and  duties  are  of  a  shifting,  fluctuating,  and 
uncertain  character,  dependent  on  a  variety  of  conditions  and  circum- 
stances entirely  beyond   the  control  or  guidance  of  the  Govornnjent.     A 


9 

banlier  can  never  to  a  certainty  predict  or  foretell  the  amount  of  the  de- 
mand tlie  depositors  or  bill  holders  will  make  upon  him  at  any  given  time. 
In  good,  prosperous  times  the  demand  will  be  moderate;  in  hard,  bad 
times  it  will  be  excessive,  and  in  times  of  panic  ii  will  amount  to  a  raid  and 
complete  destruction.  In  good  times  the  reserve  can  run  low,  but  in  bad 
times  it  must  be  large  and  ample,  for  the  demand  upon  it  will  be  much 
jjreater.  Our  sound  banks  never  kept  such  large  reserves  as  they  did  in 
the  bad  times  of  1893,  1894,  and  1895.  Their  reserves  were  so  large  that 
they  derived  no  substantial  profits  from  their  deposits. 

GOVERNMENT  AS  A  MERE  DEBTOR  TO  ITS  BILL  HOLDERS. 

And  so  it  is  with  the  Government  as  a  mere  debtor  to  its  bill  holders. 
In  prosperous  times  the  call  for  redemption  is  slight  and  the  circulation 
is  ample.  In  hard  times  tlie  call  for  redemption  is  excessive  ajid  the  circu- 
lation is  nominal.  But  there  is  one  anomaly  the  Government  labors  under 
that  the  bank  is  free  from.  The  Government  is  never  done  with  redeeming 
no  matter  how  much  it  redeems,  for  under  the  law  as  soon  as  it  re4«iemi5 
a  note  it  must  at  once  reissue  it.  Redemption  relieves  the  bank  from  the 
burden,  but  with  respect  to  the  Government  as  to  its  Treasury  notce  re- 
demption does  not  redeem. 

While  the  redemption  demand  upon  the  bank  may  be  uncertain  and 
fluctuating,  it  has  nevertheless  a  limit.  With  the  Government  the  redemp- 
tion demand  is  not  only  uncertain,  but  it  is  utterly  witliout  limit;  and  it  is 
this  fact  which  embarrasses  and  handicaps  the  Government  more  than  any- 
thing else.  It  places  it  completely  at  the  mercy  of  the  whims  and  neces- 
sities of  the  holders  of  the  notes,  who,  as  a  rule,  are  governed  by  their  own 
selfishness. 

But  the  duty  of  responding  to  this  illimitable  redemption  demand  is 
further  aggravated  by  the  fact  that  the  redemption  fund  must  be  kepi  in 
gold,  owing  to  the  disparity  between  the  two  metals  and  for  th*  sake  of 
maintaining  the  parity.  The  Government  can  not  artificially  regulate  the 
inflow  of  gold  except  by  purchase.  Outside  of  this  the  inflow  or  outflow 
of  gold  is  wholly  dependent  upon  trade  and  business  conditions.  If  the 
balance  of  trade,  so  called,  is,  as  a  whole,  in  our  favor  there  will  be  an 
inflow  of  gold,  more  or  less,  in  proportion  to  the  balance  in  our  favor.  But 
if  the  balance  of  trade  is  against  us,  then  there  will  be  an  outflow  of  gold 
measured  by  such  balance.  We  are  still  a  debtx>r  nation,  and  for  some  years 
to  come  the  balance  on  that  score  will  be  against  us.     We  shall  have  to 


10 

overcome  that  balance  by  the  balance  in  our  favor  upon  the  sale  of  our 
products — raw  and  manufactured — and  it  is  onlj^  the  excess  of  such  balance 
over  the  credit  balance  which  gives  us  the  substantial  balance  that  bring-s 
the  inflow  of  gold. 

But  it  is  evident,  on  reflection,  that  our  trade  balance  rests  upon  at  least 
two  grounds,  is  dependent  upon  at  least  two  contingencies — first,  on  our 
produc^tive  capacity  in  any  given  year;  and  second,  on  the  demand  for  our 
surplus  abroad.  Barren  and  scant  harvests  at  home,  and  ample  and  boun- 
teoHS  harvests  abroad,  will  infallibly  be  apt  to  turn  the  tide  against  us. 
And  such  unfavorable  conditions  we  can  neither  predict,  stay,  nor  guard 
against. 

A  FACTOR  THAT  SHOULD  BE  NOTED. 

There  is  another  factor  that  should  also  be  noted  and  taken  into  account, 
and  that  is  that  the  inflow  of  gold  from  commercial  causes  does  not  neces- 
sarily bring  the  gold  into  the  Treasury,  for  there  is  no  law  requiring  any 
gold  paj-ments  to  be  made  to  the  Government,  not  even  for  customs.  There 
are,  and  frequently  may  be,  times  when  our  banks  and  other  monetary 
institutions  are  in  need  of  increasing  their  supply  of  gold  to  an  unusual 
degree,  and  hence  at-  these  times  and  for  such  purpose  these  institutions 
vnay,  for  the  time  being,  temporarily  intercept,  divert,  and  absorb  the 
inflow  of  gold  arising  from  our  trade  balance. 

Thus  it  will  be  seen  that  our  Government,  as  to  its  gold-redemption  fund, 
may  suffer  from  a  double  embargo — an  adverse  balance  of  trade  or  an 
abnormal  domestic  demand  for  gold.  All  these  conditions  and  contingencies 
to  which  I  have  thus  briefly  alluded  show  how  fickle,  unreliable,  and  uncer- 
tain, and  of  what  perplexing  and  doubtful  character  such  Treasury  notes 
are,  either  as  loans  or  as  currency. 

As  there  are  certain  trees  of  the  forest  that  have  the  quality  of  conducting 
thunderbolts  from  the  storm  clouds  of  heaven  to  the  bosom  of  the  earth, 
causing  havoc  and  destruction,  so  with  this  currency — it  can  so  easily  and 
swiftly  be  the  means  of  conducting  doubt,  misgiving,  stagnation,  and  dis 
tress  from  the  storm  cleuds  of  the  business  and  financial  world.  It  can  be 
made  the  vehicle  for  depleting  the  gold  reserve,  for  destroying  the  parity 
of  our  monej',  and  for  reducing  us  to  a  fluctuating,  shifting,  and  depre 
ciated  silver  basis. 

The  depressed,  stagnant,  and  panicky  times  of  1893  and  1894  gave  lis 
ample  proof  of  this  fact.  The  lesson  of  those  dark  and  dreary  daj's,  with 
their  havoc  and  distress,  wrought  and  threatened,  ought  not  to  be  ignored 


11 

nor  easily  forgotten.  The  memory  of  it  ought  to  admonish  ns  to  greater 
care,  prudence,  and  circumspection.  The  rule  that  a  sound  business  man 
would  apply  to  his  own  affairs  ought  to  be  a  guide  to  us  at  this  juncture. 

Would  a  careful  and  prudent  merchant,  in  active  trade,  short  of  oiierating 
capital  and  wanting  to  borrow,  take  the  risk,  for  the  sake  of  pnobably 
saving  a  little  interest,  of  a  large  loan  payable  on  demand  in  gold,  or  would 
he  prefer  a  reasonable  time  loan  with  a  low  rate  of  interest?  No  one  can 
doubt  the  course  he  would  take  under  such  circumstances.  He  would 
prefer  the  time  loan  with  its  interest  rather  than  the  doubt,  uncertainty, 
and  anxiety  of  the  demand  loan.  The  demand  loan  might  be  the  means  of 
hurling  him  headlong  without  warningf  into  bankruptcy  should  the  hearb- 
lessness  or  necessity  of  the  creditor  impel  him  to  demand  payment  of 
the  loan. 

THE  INTEREST  ON  THE  TIME  LOAN  A  WELL-INVESTED  PREMIUM 

OF  INSURANCE. 

The  interest  on  the  time  loan  is  a  well-invested  premium  of  insurance 
against  such  misfortune.  The  risk  of  a  demand  loan  is  even  greater  for  the 
Government  than  for  an  individual,  for  it  involves  the  maintenance  of  an 
ample  gold  reserve,  and  of  the  parity  of  our  money — duties  not  resting  upon 
the  individual.  The  greenback  issues  of  the  war  were  noninterest-bearing 
forced  loans,  not  payable  on  demand.  Th  Government  in  effect  said,  We 
can  not  redeem  these  notes  till  the  war  is  over  and  we  have  recuperated 
from  its  effects,  but  in  the  meantime  we  will  accept  them  as  payment  for 
all  Government  dues  except  customs. 

This  loan  arose  from  and  was  justified  by  the  necessities  of  the  war,  but 
there  is  no  doubt  that  the  burden  of  it,  prior  to  the  resumption  of  specie 
payment,  resulting  from  its  depreciation  in  value,  was  far  greater  than 
the  interest  saved  by  its  circulation.  Of  all  our  war  loans,  from  first  to 
last  it  was  no  doubt  the  most  expensive.  Its  justification  was  that  for  the 
time  being  it  filled   a  gap  that  could  not  have  been  easily  siipplied  by  a 

time  loan. 

But  this  war  issue  funiishes  us  no  precedent  for  the  issue  proposed  by 
the  majority  of  the  committee.  The  war  greenback  was  an  indefinite  time 
loan,  and  it  did  not  at  that  time  and  juncture  involve  the  maint,enance  of 
the  parity  of  our  money,  for  at  that  time  we  were  on  a  pure  paper  basis. 
No  reasonable  man  now  wants  such  a  greenback.  We  all  want  a  greenbai-k 
payable  on  demand  in  our  standard  money.  Our  past  custom  and  experience 
show  that  an  additional  issue  of  $150,000,000  of  Tro-isury  notes  would  in- 


12 

volve  and  require  an  additional  permanent  gold  redemption  fund  of 
$43,0(K),000,  so  that  the  net  amount  of  circulation  derived  from  this  issue 
of  notes  would  not  be  over  $107,00#,000  at  any  time. 

This  amount,  however,  is  more  apjiarent  than  real.  In  good  times,  with 
a  favorable  balance  of  trade  like  the  fiscal  year  now  drawing  near  its  close, 
this  amount  would  about  measure  the  circulation,  but  in  such  times  as 
from  1892  to  1897  the  circulation  would  be  much  less,  for  there  would  be  a 
constant  redemption  and  reissue  going  on,  with  a  constant  shifting  and 
fluctuation  in  circulation,  and  the  expense  of  maintaining  the  gold  reserve 
would  be  far  greater  than  any  possible  gain  of  interest  from  such  circula- 
tion. At  all  events,  the  slight  gain  of  interest  will  be  no  compensation 
for  the  great  risk  and  burden  of  maintaining  the  gold  redemption  fund 
and  for  the  doubt  and  uncertainty  it  will  tend  to  throw^  around  our  paper 
currency  among  our  own  people  and  throughout  the  world. 


OTTB  PEB   CAPITA   CIECULATION   NOW  HIGHEB   THAN   AT   ANY 

TIME  SINCE  1867. 


The  IsBUe  of  these  notes  is  not  called  for  through  any  lack  of  currency 
or  deficiency  of  money.  On  the  1st  day  of  May  last  the  per  capita  circula- 
tion in  this  country  was  $24.33.  A  year  ago  it  was  $2.'!. 01.  Our  per  capita 
circulation  is  now  higher  than  at  any  time  since  1867,  except  in  1S92,  when 
it  was  $24.44 — only  11  cents  more  than  at  this  time.  There  is  an  abundance 
of  money  that  ean  be  borrowed  at  lower  rate  of  interest  than  ever  before. 
Surely  no  candid  man  will  contend  that  the  issue  of  these  no-tes  is  called  for 
by  reason  of  a  dearth  of  currency.  Neither  is  the  contention  well  grounded 
that  an  issue  of  these  notes  will  obviate  the  issue  of  bonds. 

On  the  contrary,  if  such  times  should  come  upon  us  again  as  in  1893-0  i, 
these  notes  would  be  the  instruments  that  would  be  used  by  hearlleys 
brokers  and  money  changers  to  withdraw  gold  from  the  Treasury  and 
force  us  to  replenish  the  loss  by  an  issue  of  bonds  to  obt^iin  gold.  And 
Buch  an  issue  of  bonds  is  only  measured  by  the  greed  and  power  of  the 
money  syndicates.  The  misfortune  is  that  we  are  never  through  rcdeeo-.- 
ing  such  netes,  for  under  the  law  they  have  to  be  reissued  as  soou  as  re- 
deemed. More  greenba«ks  simply  furnish  Wall  street  with  great  means  to 
abstract  gold  and  to  force  the  issue  of  bonds — bonds,  too,  that,  as  a  rule, 
will  not  go  into  the  hands  of  the  masses  of  the  people.  Surelv  no  scheme 
can  be  better  devised  than  the  issue  of  these  notes  to  put  our  Goverumenl 


13 

in  complete  control  of  the  so-called  money  power — the  Morgana  and  othar 
syndicates  who  may  desire  to  raid  our  Treasury. 

Mr.  President,  I  desire  to  say  a  few  words  as  to  the  manner  in  which  the 
question  of  the  seigniorage  strikes  me.  Under  the  law  of  1890  there  were 
purchased  168,674,682  ounces  of  siilver  bullion  at  a  cost  of  $155,931,002,  or  an 
average  cost  of  92.44  cents  per  ounce.  For  this  amount  of  silver  Treasury 
notes  have  been  issued  to  the  amount  of  $155,931,002,  of  which  $102,394,280 
are  still  outstanding,  and  these  represent  the  actual  cost  of  the  silver  at 
92.44  cents  per  ounce;  amounting  in  all  to  109,355,514  ounces.  Sixty-six 
million  two  hundred  and  eighty  thousand  ounces  have  been  coined,  and 
the  notes  have  been  taken  up  and  replaced  by  silver  dollars. 

The  only  seigniorage  that  can  be  fairly  considered  a  matter  of  legislation 
and  open  at  this  time  for  consideration  is  the  seigniorage  on  the  silver 
which  has  been  coined  and  which  has  taJcen  the  place  of  those  notes,  and 
that  does  not  exceed  the  amount  of  $20,000,000. 

SILVEB  AT  ITS  COST  PBICE  IN  THE  NATTJBE  OF  A  TRUST  FUND 
AS  TO  ALL  THESE  NOTES. 

Until  the  silver  is  coined,  so  long  as  these  notes  are  outstanding,  that 
silver  at  Its  cost  price  is  in  the  nature  of  a  trust  fund  as  to  all  of  these 
notes,  because  the  notes  were  based  not  upon  the  quantity  of  silver  that 
it  takes  to  make  a  silver  dollar,  but  they  were  based  upon  the  cost  of  th« 
silver  bullion  purchased;  in  other  words,  for  every  dollar's  worth  of  silver 
purchased  a  dollar  in  notes  was  issued — no  more  and  no  less — and  now,  in 
advance  of  the  retirement  of  these  notes  of  1890,  it  would  be  a  matter  of 
bad  faith  to  absteact  in  any  shape  or  manner  the  silver  which  is  their  basis. 
But  in  respect  to  the  amount  which  has  been  coined,  there  is  a  seigniorag* 
of  near  $20,000,000  that  is  loose  and  is  available  and  could  be  utilized.  My 
idea,  however,  is  that  the  safest  way  of  utilizing  this  without  producing 
any  friction  in  our  currency  is  to  coin  it  into  subsidiary  silver,  if  it  has  not 
already  been  coined. 

Mr.  ALDRICH.    Will  it  interrupt  the  Senator  if  I  make  a  suggestion? 

Mr.  NELSON,    Not  at  all. 

Mr.  ALDRICH.  I  wish  to  suggest  that  as  to  the  $20,000,000  of  which  the 
Senator  speaks,  that  kas  been  covered  into  the  Treasury  and  has  been 
coined  into  silver  dollars,  and  certificates  issued  against  it. 

Mr.  NELSON.    If  that  is  true,  that  covers  it. 

Mr.  ALDEICH.     It  does,  entirely. 


14 

Mr.  NELSON.    If  the  Senator's  statement  is  true,  that  will  cover  it. 

Mr.  ALDEICH.    There  is  no  question  about  that. 

Mr.  COCKRELL.    I  did  not  understand  the  Senator  from  Rhode  Island. 

Mr.  ALBRICH.  I  said  that  the  seigniorage  already  accrued  upon  the 
purchase  of  silver  under  the  act  of  1890  has  been  coined  into  silver  dollars, 
and  that  there  are  certificates  now  outstanding  against  the  whole  of  it. 

Mr.  COCKRELL.  We  coined  nineteen  millions  into  silver  dollars  and 
covered  the  balance  into  the  Treasury. 

Mr.  ALDEICH.    That  is  exactly  what  I  said. 

Mr.  NELSON.  If  that  is  true — and  I  do  not  question  it — there  is  no 
seigniorage  that  in  justice  and  equity  is  fairly  available.  The  seigniorage 
on  the  uncoined  silver  will  be  utilized  and  coined  as  fast  as  the  balance  of 
the  notes  are  retired,  and  that  is  conformable  to  the  letter  and  the  spirit  o1 
the  act  of  1890.  Those  notes  are  based  on  a  given,  fixed  quantity  of  silver 
bullion,  and  that  basis  should  not  be  tampered  with  in  advance  of  their 
retirement. 


(No.  14.) 


Achtb.  JOSEPH  W.  BAILEY,  von  Texas. 
Achtb.  J.  P.  DOLLIVER,  von  Iowa, 
Achtb.  JAMES  K.  JONES,  von  Arkansas. 
Achtb.  CHAS.  W.  FAIRCHILD,  von  Indiana. 
Achtb.  KNUTE  NELSON,   von  Minnesota. 
Achtb.  WILLIAM  LINDSAY,  von  Kentucky. 


FROM  THE  CONGRESSIONAL  RECORD. 


Achtbaren  JOSEPH  W.  BAILEY, 

^cmofrntcn  tion  2rjQ§, 

Sm   a^epvcifcntanten  >  §aufe   am   2G.    2(pvil    1698. 

(5elb  fiir  ben  Krieg. 

31>f!ni  b-'e  i:-frrcii  l-chaiu-tfii,  ba^  fie  §100,000  000  fjabcn  niiiiTen,  ffK  tie  Sleuevn  crbvltn 
wcitfii  foriini,  10  wi'lifii  ttir  bici'e  i^umme  auct?  aii|'cl)atTcii.  5S3ir  iiaben  tin  ertiniiamte  niie 
iiininie  uon  iiber  ^i'2,U0(  1,000,  t>it  »ir  ju  ibrcr  T:is?pofition  ficllcn  toellfii.  Sffiir  ivylleit  iiiitt 
mir  bfn  rjiitrtnjftfvetav  nnroeifen,  t>ic  (Silber-Sftfinicrnjic  tit  gtlbcrbrnar^  vrntifii  ,;ii  l.iOrit, 
fciibeiit  t»tr  woUtit  tint  etiiiacbtiijrn  ber  ^-^raciuitq  uorjiugrfifen  uiib  \i)n  ©ilbcr  (Jntif.citu  tafiir 
nueiifbfit  JU  liitjcn,  ftoiiitt  bie  arie.iefo|'tcit  bcftrttten  njeiben  fbitiieit,  toie  ci?  itutl)a>euM,',  i-oirc. 
(^iU'ulauig  nuf  bfr  ceniofrntifcben  ©eite.)  JBcuii  bag  nic^t  qemiij  tft  —  unb  nacl)  ril'rfui  (S3iit« 
(iditen  tcirb  fi3  itidit  ^enufl  fem  —  fo  ivoUcn  n)tr  tDfitcr  flebett ;  tt?ir  toollcn  ben  (Vinonjffficiar 
nniDfiicn,  ben  dtt\t  bcr  S100,000,000,  be,  icie  3hr  fai^t,  fofort  notbWfiibia  fiiib,  biiiUj  vai3 
(inbe  I'cn  858,000,000  (ijrecnbncf^  iinjufcjjnffcn.  (3lpvlauei  nuf  bemofratifdicr  ^eite.)  iSsi 
(tiebt  frinen  'Wann,  bcr  bc^ivei'flt,  ba§  bie  9{eflterunfl  ihre  gfrcnlation  urn  So8,0(i0,000  oljiic 
Okfnbr  vcrtnebrcn  frtun.  3(1)  bin  fo  weit  enifcrnt  an  gintijinuiJ  ju  glnuben  rote  irgenb  ^e- 
monb,  lit  tirtbe  nie  ju  ber  Slnfidjt  gebalten,  baf)  ber  Songre^  ttroai  mi  nidbti  niniten  fami, 
nb^r  tcbroeif,,  b.i§  biefe  JKegiernng,  in  etncr  3eit  tcie  biefe,  tt)r,c  „Ccmanb".9?cten  leid^t  unb 
fidjir  urn  ^58,000,000  cerme^ren  fnnn,  unb  auf  bcr  aiibcrn  ©cite  fi^t  je^t  tcin  TOann,  bcr  bao 
(Scentbeil  bcbiiupten  wirb. 

•Omt  bieien  142,000,000  Set'gnorageu.  ben  $f'8,000,000  gdin^amt^noten  hjiirben  trirnid't 
nur  bie  .^UiegiSffften  bccfen,  (cnbern  wir  wiirben  bie  (S5e|diaft«<l«eit  oon  eincni  Vxndt  bcf.  eicit, 
ben  fie  nnbenveitig,  burd)  biig  iJnt:iicben  be^  Wolte^  ou«5  bcr  Sir  ulntion,  erleibcn  roiirbc,  iBir 
niiifffn  r.no  erinnern,  ta^,  tvcnn  unfcrc  Sdiiffe  nnd)  bcm  Stueianbe  gcben,  fie  nidjt  unfere  '•}?c 
leit  niitnebmen  fijnnen.  SJBenn  ubert)iiui.>t  ^foien  mitrtenommen  tcfibcn,  njcrten  fie  nur  nlsJ 
i-*anfpitpier  i\el!en  unb  jur  Sdleftion  juriicfiicjdnrft  wctbcn.  Unfere  Dffijiiere  iniiffen  9JHini,e 
luitncbinen  unb  bie  Sntjifbuniien  con  ben  ft3fid)afu^n)egen  miifjen  tnncrbaib  ber  nnd)ften  pier 
Wonate  unfeblbar  mebr  ali  bie  bunbcrt  TOillionen  Dollar^  betrngen,  rocldje  tcir  brnbuditigiu 
ju  liefcrn.  Unfer  SSorfc^Ing  liji't  bie  Brage  alfo  nt^t  nur  oom  (gtnnbpuntte  ber  ^pariamfcit, 
lonbfin  oud)  ^vm  nnbern,  ati^tigeren  Stanbpunftt,  bem,  \>it  ®ef4iafwintere([en  be«  ilanbc^ 
oor  ungci.iigenber  Sirculatien  ju  roaljren. 


2Uts  &CV  Hc^e  bcs 

Achtbaren   J.    P.    DOLLIVER, 

9le^ubHfaner  ban  ^o\oa, 

gefjalten  tm  9ieprdfentantenj§au[e  am  26.  3(pril  1893. 

Was  fiir  Steuern  fd^Iagen  wit  vox  ? 

3rf)  hc.Ut  beabfic^iigt,  bie  cerfd^iebencn  5?efiimmungen  ber  SiH,  tuelc^e  jt^t  t)or  bem  ^nufe 
if^,  etwne  fijige^ienber  jiu  befpredien,  otiein  ber  l^orfipcr  be«  21u«fd)uffe?  (C'err  rtiiglcv)  i)M 
jebe  berfelben,  (cwie  bte  mit  ben  eerfdiiecenen  Sefttonen  ber  Sid  uerfniipften  llmftanbe  fo  oi'U> 
ftiinbig  erilart,  bog  ti  fiir  irgenb  Semanben  auf  ber  einen  ober  anbern  Seite  Ui  $»aufe0  un- 
nbtbtg  tfi.  Hi  Jbema  wetter  ju  berii^ren.  Dw  Sorfi^tr  be«  3luafcJ>uffe«  \)at  bcm  $au|e  eint 
coUftiinbigc  (Srflarung  fiber  unfere  93orf(t)Ia8t  gegeben.  Die  gefammte  auierorUnflidje  9te- 
cenue,  welAe  baburcti  bem  ©ita^t  jugefiibrt  »trb,  tfl  auf  natieju  $100/X)U,000  9efc(>aet  unb, 
trenn  btefe  3?iU  etn  (SJe  ej  totrb,  trirb  fte  ba«  (g^npamt  in  ben  ®tanb  ftptn,  feinr  Safitn  |U 
|u  trngen,  ofent  bteftlben  mti^  unfwn  9Jac^fo«imen  }u  vtmbtn. 


Tfv  5hi>M'cfcuB  ^tit  flllf^  ertvcafn,  t»n^  iibfr  bte  S^crfditiinnip!  unb  5*illi)iffit  tieitx  ^taicm 
(Hffiiflt  nuTtCH  ift.  So  »rcit  irb  in  ^^ftr.icbf  roinnif,  mug  i.t  fa>uii.  t'lfi  i*  nid)t  fejeii 
fnnii,  n.n«  Sli  (M'tXM'tHI  mil  nviiiafr  Vni'tfii  unt  i^fCnicfunci  cimh  5i>olfe  ber  iyfrciia.iien  (gfna 
ti'U  ertobcn  nxrbcn  ffnufii.  Aiinrjii^  5JJilltoncu  bavon  fommcn  yon  j^nni  '••Mriiliin,  tic  in  jcccni 
Vanbe  bcv  SOL'flt  nle  V'-IK'ibe  Sttuftobjffte  antrfonnt  tucvbfii,  unb  priittn'd)  .illc  nnccin  n5fr^fn 
ytn  bem  Ibtilt  tti  (vem.inrcctfn^  brjablt  treibtn,  ber  am  jrcniofien  tiii^on  bctviicSt  wirb.  ^di 
i3C|'tclje,  ta§  tvir  jiemlidj  i>ifle  hibrfanliflU  iiriiifen  biefcr  i)?a^rtri«l  rrb«lten  babrn. 

S^ach  ber  fkttt  mcinfi?  i>vcunbti3  ihmi  lixnH'  {t>enn  t*'aiU\<)  jn  uribcilcn,  bie  rr  fotbcn 
lUbiiltc,  gicbt  e^  feine  befoiibefcn  (itnwanbe  nt^tn  bie  IMll,  aui^iienoniMien  j^e,un  bii^,  wa^ 
lie  nic^t  entbalt.  9?ac^  fcriifaltijier  iSrroa.^unii  werteu  yen  ^cncn,  ber.n  'Pflicbi  ec-  <.\t,  iu  ^er- 
eini(]ung  nut  nn^  biefe  93ill  i?cr  bnS  C*nu0  ju  Ict^cn,  teine  widi.itien  Mbigrn  qrurn  irj^mc  Wfldicx' 
3iem  in  bcrftlben  erboben,  S5?^a^  tbun  ?  <Bit  \ac\tn,  tii(?  fie  ter  tivcvnubuun  tir  iAonricb-ilC' 
bei  i'cicinii^ten  (Stanten  cvvp"'''"'/  n«§fr  wenn  e«  uiubis  ift  ben  (£rctit  uno  tie  jubluuij?- 
f.i^ifileit  bM  Sc^apami^  ber  syerein^tcn  staattn  ju  wajjreu. 

VOol^QV  foil  ^as  (5clb   fommcn? 

Slber  (2ic  toijjen,  unb  jctcr  (5je|'c^affi?nianu  >vei§,  baP,  fo  tiel  (^efb  rtnd)  von  biefcn 
Steuern  erboben  irerbcn  ning,  wir  son  bente  nn  praftii'ili  mit  fii.em  Scb.iUf  i"  ^fi  .Ulrica 
f-fben,  ber  niibt  im  5tanbe  iji,  bie  nijt^i;en  fSjeitcr  ju  liefrrn  <uit  tap,  lofun  nidit  (Siclt  iicbor.it 
ivirb,  brt«  €:d!aeiiutt  nngcjtc^te  biefer  SBeburfnilJe  ^iilfloiS  fein  wirt.  Sli^ao  i|'t  ber  wirflicbr 
'ictanb  be^  Scha^amt^? 

9Sir  befii^cn  cine  Sn.ufumme,  Irtut  Serid^t  »om  26.  «pril  1898  r>on  3219,157,981.811 
ujoson  bie  fcli^cnbcn  yofter.  a\i  nictt  cerfiigbar  nbj?fjcijcu  tcerteii  miiiJen  : 

miic^t  Scbnib,  jn^lb.ir  nuf  iverlancicn  am  l.'Stpril S  1/283. 780  26 

9?ntioniil«  2?nnfnoien  (£inli)fung<5fonb«  3l,94(i,93;i50 

25onbg  unb  ^ntereiTen  jablbar  im  laufenben  'DJonat 5.l"29,121.85 

€ci)cibentiinjcu  au^tr  dura 5,0«)0,(M);>.00 

2}anf-iUlauien 18,512,936.22 

3ufammen 861,872,771.83 

SPon  bfn  .92I9,157,98l.80miif1"en  bct^trern  biefe  JGl. 872,77 1. 83  ab^e.^cicn  ivrrbrn  unb 
e^  fctblcibcii  i;;!  J7,VH."»,2()J.97,  trovon  bie  (A5cltre|ev«e  ton  $lUO,(KMt,(»0  nbacu'iscn  meiten 
mnp,  U'ono.it  am  2t;.  5lvril  lH'J8  etne  wirtlid)  vcrfiidbarc  ^ilrtnj  von  %7,285,29  '.97  mrl'liibt. 
Weoien  biefe  iff  nun  Daftifct)  tie  ganjc  58er»illiAunci  oon  $50,()(K>,000  »om  Icijten  Woaate  ju 
jc^eii,  njovon  fin  Xbfil  fc^on  niiejiej]cben,  ber  JKcft  bait  au>?(iejablt  njorbcn  fein  anrt. 

TIcfe  3'i''!'n  Ifis^C/ fo  ba§  jcber  93J.inn  yon  fycfcbafr-. fcnntni^  e^  yerfkben  fann,  ba§, 
wennnjir  bie  (yoltrettroc  ab^ieben,  jegt  rocnii^cr  aU  S6O,(MK),O00fiir  tie  5^i'ftcn  tc^  eben  bci^on- 
nenen  9ro§en  Hnternebmene  yorbanten,  »on  tcnen  S5i),000,0()0  fcljon  jur  3''iMung  anitcwiffen 
fint.  <Bo  ba§,  weil  wir  bag  (gcbapamt  nicbt  biilflod  Inffen  wollcn  in  biefer  qrofjen  ^tii,  njir  tie 
l^eftimmnng  Uber  ben  i'crfauf  con  5i3onb«,  nit  in  tiefer  Sill  oori^cfcblaiien,  befiirnjorten. 

3cb  glaiibe,  ba§  ba^  Sdjafamt  ber  i'creiniflten  Staatcn  bie  Wact't  balen  foUte,  bas?  ©fit 
jtur  Tftfung  ber  TefiritiJ  in  ten  laufcntcn  Ginnabnun  ju  borgcn.  3(b  glaubc  nicbt,  ba§  e><  tueife 
ift,  ober  patrictifd),  bae  Scbapamt  ber  i'erciniatcn  i^taaten  angeficbtS  feiner  53erbintlid)feiteii 
b;  Iflofcr  ju  Inffen  aliJ  tie  gcwobnlirficn  rijcfttafi^banfer  in  ten  lUreinigten  Staateu  finb.  3fb 
rcriB  nicbt,  cb  bie  33ctrage,  tvclcbe  wir  ycrmifel?  titfcr  3lnlei^en  ju  erlangcn  fucbcn,  ju  grop 
fniD  ober  nii^Jt,  id)  wiinicbe  nnr,  ba§  tcb  fiiblen  fijnnte,  ba§  roir  Slntoritat  jucten  jnyiel  ju 
borgen.  9?un,  h?a0  fdJlagen  bieff  C>errfn  (bie  Xemofraieu)  »or  ?  (Sie  fd)lagen  bieietlei  cor. 
3uerjl,  bn§  reir  tai  Siiifommcnfttuer-'iJtff^  in  mutilirter  (^orm  ro'eber  p.iffirfn. 

Ungleid)  meinem  Breunbe  roerbe  icb  micb  nuf  fein'.?lrgumcnt  iiber  ben  ffiertb  biefer  Steuer 
einliiJTen.  5)fir  ift  flar,  ba§  tiefelbe  jrcci  ©eiten  t)at.  3>iele  ^erren  auf  tiefrr  ^sceite  babcn  bie 
Slnficijt  nu^gefprocben,  bap  tieft  ^^itif.immeiiftcucr,  njrnn  fie  gefe^licb  crbobtn  n>erben  fi?nnte. 
eine  gerecbtt  unb  proluftipt  St.uer  fein  wiirbe.  (Sd  ift  aber  nic^it  nbtl;ig,  ^ier  bicfe  jir.ige 
JU  beieud)ten. 

5i?tr  ftf^cn  ^'roien  9lue.-ab«n  gegrniiber.  ©ii  fcibcrn  bie  tpiitger  ber  9?crtinigten  ^taa- 
ten,  bie  lungen  5)Janner  jctfi  £taatee  tu  ter  Union  auf,  ibr  ©cfcbaft  ju  »fr.a)|fn  unt  fitb  in 
Wi'it.ir  i'agern  ei  jufintcn,  urn  biefcn  Alrifg  iiu  fubren,  unt  unicre  ^icuntc  a  f  ber  nntcren 
<i)eite  be^iiiiien  mt  (^iiirucrung  ciner  vg^trtitfcaije,  bie  feit  ja^ren  ni^lt  me^r  ooi  bem^ublttum 


afWfff"  iff,  unb  Hftcn  fitr  tit  Untfrbnltuvg  ttx  3lrmee  «nc  glotle  bit  Stnnat)mfii  riiur  afric^l- 
iirtun  Miiif,  nn,  bif,  mt  adowmxtvn  Xingiev  fo  trcffliclj  gefagt  bat/  f(|)on  im  3?orau5  gtijen 
un<J  fni|it>icbftt  ift. 

3*  crtjcbf  fcinen  (5tn».-nb  flfflfit  iit  SPiebfraufnabmc  bc3  gtiifomnirnftfiicr- 'JHojciTc?!, 
3cb  bnbc  nitt  sincn  prrniiiunttn  9)iannern  ficfp  oiieu  itnb  iiefunten,  bag  i>tclc  "^iiificfaifn  iibe. 
bit  (Sinfoninuni'truer  bfiicben.  5»fin  grcuub  I'on  Jera^  r^">frr  iPniftvt  fii^t,  uiil'erc  SSatfrr 
Wfldte  bie  i^etfaiTuna  ;tiiiuiiertfn,  t)atlcu  nur  eine  febr unbcfiiiiimtcintD  unoillflaiibtiie  3bfc  iifacr 
bie  'Ofntur  ciiicr  bircften  ^Sitfucr.  Sr  \)at  uniJ  nud)  (^laul'cu  laiJe  •,  bn6  b.i^  58uiibc3-Dtjer- 
aevidtt  bcute  ned)  fine  febr  unbci'timmte  unb  unricibticit  Ctbfc  bariibfr  bat  ma?  cine  birefte 
Sttucr  ift,  unb  tcr  nllj^fuifine  Ion  \\nt  tic  JlCitttiuifl  jciner  3?cmerfnngfn  niaittcn  auf  mid) 
ben  iSintnicf,  bop  eg  rcwaliivi  wcniuc  Vrutc  tn  bicfcm  ('ante  giebt,  ttfici)e  njijjen,  ttiag  ciiiebirclte 
iSteucr  in  ii}itflict)fiit  ift.  (.?'flad)ier  nuf  ber  rcpublifanifcbcii  Scitt.) 

Die  prdcjung  ber  Silber=Seigniorage. 

Differ  Ungettjifjljeif  iteacn,  wei(  roir  ®clb  unb  nicbt  (Sjefe^budier  brnudben,  toftf  ttjtr  (Sin- 
nnbmen  unb  fetne  ^ProAfffe  in  ben  «5eiia!tfn  niMbroeiibiji  brtbcn,  ov>poMire  icb  ber  i^erntift^ung 
biffce  i^oiidilngc^  niit  ber  Sinfcmmcnflcuer-Sontrooeife  »pm  Entire  1894.  (^iivplrtu^.) 

3unad'|t  fdJliigt  er  ijor  bie  5fiiiuioraae  in  beut  Sdjage  tcr  ikreinipten  fetaateu  aui?jU' 
Vrfigen,  Dai?  ftcbt  cbcnfalK^  an**,  H)tc  bie  ffiicfcrfcbr  in  ticfe  Mnmntcr  eine5  alten  gi^fui'bc^. 
r»d)  \)ci\>t  fcit  fiinf  %-\l'xtn  luriud't  nngjuftubiren,  toii3  bie  Sei.uUi'raiie  eiiientliil)  ifi,  unb  narb 
?Ultm,  tt5ii>5  id)  bariibcr  oehrnt,  lUaube  idj,  ba§  (SJoui'crntur  Din;Uf»  e»5  gerabe  rid)ti!?  b'lt.  S3 
ift  ter^rcfit  au'3  ber  *).'ri'U(Ung  mm  ffielb,  ber  in  beniUnterfciicbe  jroifcben  bcm  bejablten  SBcrtbe 
bc5  ^Juiteiial^  nub  bem  uoniinclien  iivrtbe  ber  Wiinje  beftebt. 

Dennedj  mncben  bie  ^crren  niost  bcu  i^orfrtjUig,  bie  Silbcrbanen  tm  ?3unbrgfi'bii^e  auSju- 
pra'iun.  3Benn  fie  ben  'i^otfdjLic?  matbtcn,  mij-bic  cr  ctroa-:?  lucrtb  I'ein.  3cb  aMirc  bereft  feiii, 
niit  ibnen  fiir  ein  (Skfr^  ;;u  ftininien,  baa  btc  i^unbciJ'llJitnjftatten  nnwcii't  i;"'0,(>0(i,COO  te- 
corbanbenen  Silbcrb.nren  in  >2d)cibemun^e  nn>3,u'P''''i*1c»«  Slbcr  raai*  ift  bie«  fiir  ein  iCor- 
jdilag  ?  Sg  ift  cin  --jHn'fitlaii,  bie  i^reini^ten  ©taaten  au3  bem  'Jhoiii  unfere^  Sillcrgefc^aft^ 
njiibrenb  ber  Ic^tcn  jebn  3abre  ;^u  ertmlten. 

aiHig  finb  bie  2baiiodicn?  SOir  babcn  im  SPuntciMdia^e  $1(9,804,515  llujen  fetn 
iStlt'cr.  3Bir  bejabltcii  fafiir  $99  3  i9,75'2.  (S«  i\t  bcufc  faum_b  ;b  fo  l^iel  wevtb  wif  mir 
bafiir  be.^ablt  baben.  Xcnnocb  fitLiiKu  bieje  mit  d)arafter  ftifdier  ^dieinbctlisifcit  vov,  btefen 
Arieg  mit  bem  $*rcfite  cintr  Jran^afiiiMi  ju  fiibrcn  unb  unfetc  5hincc  im  (\clbc  nnb  unfere 
glDtte  auf  bem  Weerebamtt  ju  erbal'.en,  wcnn  bicfe  iran^aftion  unsS  ftbou  ben  trr»al)nteu  ^er- 
luft  gefoiiet  bat. 

Weine  ^rcunbe,  cin  3;^orfdtIac;  wie  ber,  fotte^'t  i^  ibn  terfteben  unb  erariinbcn  faun,  lagt 
bei  Sud)  eincn  (i3eniiithi?jui"tnnb  ternnitbcn,  ber  in  $i"»bug  fdjwiniint  wie  fin  J^ifdi  im  ®affer. 
((S)fiiid'tfr.)  (Si?  ift  fcin  i'crftano  barin.  ^Ini^enommcn  bicfe  eiiiMCbiibftc  gcignii^riii^e  von 
S4'2.();'7,3:-!6  iDiirbe  jur  ^raguiit^  bcftinimt,  fo  rouvbcn  aUi  unfer-  ^htniftattcn  ment^ftcii^  fed)- 
jebn  Wonate  braud)en,  um  bicSlrbcit  ui  tbuu. 

aiMtg  wollen  lie  fonft  nod)  tbun  ?  icii  rcodett,  toif  ber  ^txx  »on  Scri^  fagt,  „(5kbraudb 
von  bem  unccrjin^iidicu  Srebitc  ber  i^ereinicten  ^taaten  m.ntcn."  5Jiii  i'crbinc-lidifctten,  bie 
auT  ^I'erlangcn  eingeliJit  tvcrben  miiffen,  unb  nabci^u  fine  'Billion  Ti'llar^  bctva:]e!t,  aa>?ftfbenb, 
finbcrn  fie  no  '  uu^,  ba|?  wir  bicfen  •Strieg  mit  ^^abhiuae'-iftforediupgen  fiibren.  llnb  tod)  wijfcn 
fie,  ro.ig  jebcr  intelliaente  (S5eid)aft^manu  in  ben  i'eicinigteu  53t  uuen  wcijj,  bay  eg  fein  Wittcl 
i^ifbt  unb  in  ber  ^rtnbel^gffd)id)te  ber  SUelt  uie  cinrg  .uacben  bat,  ten  ffic-Ib  fi"f>5  ^ablung^' 
vfrfrrid)cn5  aufrcd)t  ju  e'rbalten,  tttnn  bicfeg  nutt  bejnblt  wirb  oter  jeten  'Jlu.|fnblicf  bc^ablt 
unc  fini.eiijft  tvcrben  fann.  Uno  eg  ciicbt  feincn  ©eg, auf  ten  ein.  Sfctiieiung  bafe  .-^ablunae- 
v^  rfpredjunflcn,  tcelcbt  unter  fold)en  »ie  ben  ung  ie^tuntiiebcnee  i  Umitaubeit  au'inirl'm  wor- 
bcn,  finlijfen  fann,  cer  uic^t  nm  (£  be  foflfpieltger  ware  al3  bie  5iuggabe  son  ycr^iniJlicbcn 
:i3onbc.  _ 

3cb  faae  bcm  .?>evrn  *jon  lerag,  ba§  eine  (5}cfitaftg4^.mif/  "'"«  ^toruuii,  toeldse  bun^  eincn 
©ertbmeif'r 'JlH-difel  in  bie  .  mciif  n.Kbe  (Mef  baftx-<n3clt  fom'ut,  tnbem  bie  cyolPV'-'lin'ilf" 
fugpcnbirt  u'cvtcn,  turd)  bie  •'il'citbyfrfd)!editerun!^  uuiirev  -lA'ii  jeti,  burd)  bie  JDcidcnnii}  tie 
i;erbintlid)friten  ttt  i^tfinijUfn  ii:t..at>-n  bei  ^prafent.ition  einj^  iloft'u,  iubrcigii  j.iiKn  niebv 
^dniten  unc  Unrrcbt  luru  iad)rn  tvirb,  aW  atle 'ilrnucn  unt  aile  l\lotten  ttr  "IBelt  i>t_  fiiitf 
3ibren  anricbten  fiiuntfn.  ('^i-plaug  )  Tegweiun  verhnaf  ber  gcfiintc  Ukrftanb,  bag  tcir  fiif 
tic  i^frbinblid^fcitin  Box^t  tra>icu  bie  wir  jc^t  baben,  anft.tt  fie  nocb  ju  uermebrca. 


gmei  tPege,  auf  bertcn  tt)ir  bas  (5clb  criangcn  fonnen. 

S^  bleiben  un«  alfo  jtttt  2Bcge  auf  benen  totr  ba3  ®flb  crlangen  fonnrn  —  burd(>  33f  ■ 
ftfueruna  unfc  burc^  Sinleitjcn.  Sc^  bffurwurtc  bcibe  ffitge,  jeben  beau^ent,  j'e  nnctccm  bit 
33etiiirnif)c  btr  JKegifruna  unb  ber  Oifqirruuiie 'drfbit  e3  niifljig  ma^en.  3t^  »ci§,  e^  giebt 
tticlf  ileutf,  welc^c  btbaiiDtfit,  ba§  b.i3  Scit  itx  i^crcmigten  Stamen  ti>  ficb  ntcbt  fltf.illen  lafjcn 
wirb,  bap  bie  3"^  fomnie;i,  unb  balb  fommen  wirb,  wenn  ti  fict)  erbcbcii  unb  bie  i!afttn  unb 
llngerfdjiigfftmi  bic|tr  ncucn  Stcucrauflaiicn  ol'werfcn  wirb.    3cl)  glaube  ti  nicbt. 

3Bcmi  ee  je  bcr  5a(l  gcweffn,  bii§  cine  ^lrirg->frflarung  bireft  auf  ben  !ili?unfdb  unb  btf 
S^crbrrung  fiiu^  i'^olfc^  irfi'li^tf,  fo  tft  tic5  ber  Jail  I'l^t.  S^  gereicbt  bcm  'ihAU  fccr  iJcifinigteii 
igtaatrn  iiir  Shre,  ta§  f«  woilTcnt)  ticicrgaujen  eirciitcn  *Petto^e  con  ^JJotiorn  bie  \)o\)tx  ale 
'Paitcipoltiif  unb  ebler  ali  gijrbctung  eigcncr  matericUer  3iitfrejyen,  geleitet  roorben  iji. 

Der  prdfibent  hfai  uns  nid^t  in  ben  Krieg  getriebcn. 

Dtefeg  93olf  toufte  tm  93orau5,  wa?  bte  ?a|icn  unb  ^o^tn  be^  Srtegeg  fetn  wiirben,  unb  aUe 
btefe  Sadjen    |fat  bao  amerifaniiri'e  i'olf  in  ffinfn   ^tx\eix  ermogcn,  wat^rcnb  bie  nioditiof 
ti^oQt  bcr  offentIict)en  9J?einuiig  eniprrfticg,   njflcbe  bie  9{ation  auf  He  5E>c[Ien  eine^  Snt|)ufir>s 
m>i^  er^obcn  \)([t,  ben  feine  3.^.utfi|iit)rei|i:baft  controllircn  ober  untcvbriicfen  fonnte. 

(£g  fann  ni^t  gefagt  tterben,  bap  ber  QJrafibent  ber  'J3ereintgten  ^staaten  fein  Canb  in  be.i 
ilrieg  geftijr;;t  \)at. 

S^iittt  tx  tcii  getban,  bie  5Bol)Ifal)rt  eine^  Sanbei^  xoit  bie|e3  riicfjlctt-Mo^  in  ®efal)r  gebracbt, 
witrbe  er  anftatt  ben  .vieipeft  unt  bae  i^ertrauen  ber  ffielt  ^u  gcnie§en  roit  er  e^  tbut,  ycrbiencn, 
tag  ein  9Jtul)lenftein  an  feincn  pali  gelegt  unb  er  im  ''Wccrc  v^erfcnU  rojrbcn  ware,  roo  ei  am 
2iefften  ift.  Sr  t)at  fidj  feincn  folc^en  5Cerget)en!3  gegen  bie  2Bo^lfat)rt  feineg  i!anbee  fc^ulbig 
gemacit. 

SJnftatt  bit  offcntlic^f  5D?einung  ju  entflammen  ju  fucfcen,  bat  er  iierfitdit  fie  ju  mafeigen 
unb  i\i  lenfcn.  SInftatt  bie  Sluefidjten  auf  fin  frieMicteo  iJibfonimen  ivcg^uTOevfen,  bat  er  fic() 
niit  jeben  gutcnt  (Sinfluffe  ju  (Sum'ten  ciner  felc^en  I'iifung  ter  iieiVibilicltea  ;'lngelegcnbeit  »fr- 
bu'.ibcn.  (ir  ift  oon  feinen  geinbcii  gefcbmaljt  worben  unt  feine  Jreunbc  tjabcn  ibn  niipverflan- 
tcn,  njeil  er  bie  SBei^beit  befap,  ju  rrforfc^cu,  bie  illug^)fit  ootiiuberciten,  unb  bie  Staateflug^eit 
ta^  ^L^rtjer  unb  bas  *)Jacfaber  ju  erwagen. 

SS>enn  je  bie  ,^eit  fommen  foUtt,  ba  bag  amerifanifdbe  J^olf,  unter  ben  I'aften,  njclcie  unfcr 
^^rotertorat  uber  (Suba  ibm  auferlegt.  ficb  auflcbnen  unb  bcflagen  fcllie,  fo  i^itbt  ti  luenigftenc 
einen  'DJi'ann  im  offeutlic^en  lOebeu  cicfer  ^tU,  ber  im  Stance  fein  icirc.  tcinen  I'antaieuica 
gerabc  iiig  ®cfi(^t  l^inrinjuftijauen  unb  ibnen  ju  fagen:  „34l  tljat  mein  'i5i\tti.  meinen  'JWitbiir= 
gem  biefe  ileiten  ju  erfpaien."  (v'U'plaud.) 

Slber  alg  eincr  ber  (eine  2Bti^t)eit  ober  '■patiiotiijmu^  nie  fiir  einen  Slugenblicf  bejwei^rlt 
bat,  tcage  ic^  bie  3?ebauptung,  bi.^  roenn  biefe  lage  ficberifi^er  unb  gefcbroapigcr  Sritif  oergcffra 
finb,  bie  5Belt  mit  macbfeuber  iHiitung  auf  beu  braycn  unb  guten  OJJann  blicfen  witb  ter, 
inmitten  un»erglcicblicbea  Varmee,  feine  'ii\>\!t\\  burd)  bie  *)iatiir  iciner  *J.'flicbt  gefiegrlt,  tea 
moralifcbcn  t'clbcnmutb  bciaj),  fcftjuftrben,  fo  langc  bie  geringfte  ^offnimg  vort)auben  mar,  a  ? 
ber  Waaiftrat  einee*  ctiriftliil)tn  i^Mfei',  ben  (5influ§  feinen  Slmte^  i^u  CSunftcn  cinee  et)rcnt)ai- 
teu  Siitbcns  ju  benu^cu.    (\!autev  l?lpplau>5  auf  republitanifcbec  vs^eite.) 


Achtbaren  JAMES  K.  JONES, 
^cmofrat  don  5trfanftt8. 

©e^nlten  im  S8unbe§fennte  am  16.  ma\  1898. 

3*  »in  nicbt  ben  "IJorfcblag  befprccbtn,  |4'a.0i)(),00i)  9?oten  ciUMn  bie  .S42,(X)0,0(K)  (Silber- 
SfiiUiior.ige  au^^ugeben,  roelcbc  ber  9tcgierung  cer  'J^ereiaijtea  Staatcn  gebiirt.  bie  bfjabll  ift, 
unb  ceren  iSiaentbinn  fie  ift.  'IBir  baben  bieij  einmal  burd)  cine  :i3ill  .uij3Ccrbaet,  bie  i^on  beiben 
Vaufcru  vafi'irt  annte,  allctn  fic  ipuibe  v>etirt 


(Sfnf  onberf  SBeflimmung  btefer  SBiO,  toofltfltn  ffitnfprac^t  nbobtn  wtrb,  t'ft  tcr  3?orfc})lrtfl 
S15O,0(H),00U  ®reenl?nd«  au^jugfben.  Sin  ©enator  iai\tt  mtr  gcftern,  ojfenbar  fe^r  errcgt, 
„>&ai,  5i«MElb  au^fieben !"  |)frr  ^'rafibent,  ®olb  unb  Silbcr  mag  (^-tntgelb  frin,  abtr  fine 
(ijrfenbarf-^fote  ift  etn  *i<frf))rcd)cn  ju  be,5«()len,  unb  cin  i'crfprecbcii  auf  'i>eilangcn  ben  S3etrag 
ju  jrtl)len,  ber  nuf  ber  9tote  Acnannt  unrb  ;  eg  ift  ein  €^cbult>fcl)etn.  Der  ©enaior  son  3oma 
crjnl)Ite  und  flcftcnt,  n>ie  wnuterbdr  btcftiS  I'anb  ^txocid)  en  tft  Wfld^e  glan^enben  Sntwicfeluncifn 
ftnttgefunben  babcn,  unb  cr  iUuftrirtc  c><  mit  bcr  iSrwabnuiig  tcx  3i'"'ibme  bc3  UJerfnufe  von 
5?o|luiarfen  fctt  1882.  Sr  batte  etnen  ©cbrttt  roeitcrgcben  unb  fatten  fbnnen,  ba§  bieScbagnui] 
beg  ?){ei(l)tbumg  bee  daubed  in  1860  inclleicbt  .'51(3,bu0,O0O,0()O'betrug  unb  ba§;fu  je^t  $80^ 
000,000,000  betrrigt. 

SBir  b'ltlcn  nm  ®»be  beg  5triegfg  Bcr^in«Itd)e  unb  unt^erjin^Iicbe  Sdulben  im  (SJefammt- 
betrrtge  uon  mcbr  alg  ficbcintnbjn)iin;(i:i  bunbett  9)?illionen  X^ollar^.  5Bir  l),ibcn  ber  SBeli 
uiifcre  Ra^igfeit  gejeigt,  fclbft  in  jener  Heir  unfcrcr  s;cbwacbf,  bicfe  gro^e  ^sc^ulb  nbjutragen. 
il?cr  toifl  bahn  fagen,  bnj^  un)tr  i^ctlprccben,  bie  armfclige  Suninic  v^on  $150,OoO,000  ju  jn^lcn, 
nic^t  flut  ift?  I)a0  i^olt  rciiroe  ticfe  ©rrcnbacf^  gem  unb  bercitroillig  tn  3f'blung  irgcnb 
eineg  ®utl)aben3  annetinifn.  ^iJielleic^t  iciirben  reicbe  Wanner  fein  (yolo  ober  ©ilber  bnrauf 
Ifiben,  tt)tc  nuf  ^^onb^*,  aber  fie  fonnen  bem  i5olfe  aut^ge^abU  njcrbcn ;  fie  toerben  cila  ®elt 
gebraudx  n^erten  ;  fie  werten  nicbt  ijur  Sinliifuna  an  ^ag  visc^apaait  gefc^icft  njcrben,  fon^e(ll 
finen  Sbtil  bee  Si'culatuniemcbiuniS  bilben.  ,^ir  ^ebung  beg  beftetjenben  ©elbmange.e  fiibnr, 
unb  ®\mx-  tt)un  nn|tatt  iibfcg,  fo  lange  fie  bcftei;cn. 


Achtbaren  CHARLES  W.   FAIRBANKS, 
9ir|)nl)(i(nucr  Don  ^nbtana. 

©eljalten  im  33unbe5fenate  am  2.  ^uni  1898. 


Damals  unb  ^ci^t 

2II«  bie  9Iuggabe  toon  ®reenbacf3  im  3at)re  1862  autoriflrt  wurbe,  »ar  bte«  bur(t  bit 
UmPanbe  gcrecbtfertigt  welcbe  unfere  ©taat^moinner  umgaben  unb  bie  crnjte  unb  unabweig- 
bare  yjotbreencigfeit.'tt'eldje  fie  confrontirle.  Tamala  fatten  iieifcbiebene  ©taaten  iSecefiiong- 
Drbiranjen  angenommen  unc  »er|nc|ten  mi  ber  Union  augutt^eten  ;  bie  ^"^""f'  """■  ^oflct 
3meifel  unb  Ungewifibeii ;  9fiemanb  aU  ber  2llhnacbtige  >ini§te,  wag  bag  JRefultat  beg  Sonflif- 
tfg  fein  roitrbc.  23aariiat)liinaen  waren  anfgcboben,  ber  ^Buncfgfcba^  Wat  leer,  bie  3i{egterung 
bffa^  nicbt  ben  (irctit,  wobUT(^  fie  ibn  Vitte  fiillen  fijnnen  unb  wir  batten  prafti|c^  fein 
Sonrantgclb.  Sei^t  abcr  ift  bag  Vanb  einig  unb  burd)  unloebare  53anbe  tjerbunten;  ber  Srebit 
ift,  me  ti  |cbfint,'grcn,^cnlog ;  wix  b«iben  iSourantgclb  genug  im  Ihnlaufe,  fo  »iel,  ungefatjr, 
njic  wir  je  gcbabt,  fin  (lourant,  bag  niclitg  entrocrtben  fann  alg  unftr  etgener  i!eic()|inn  unb 
Jborbcit,  unb  9fifmanb  ift  fo  teffimiftifcb  an  ter  3ufunft  ju  jwfifcln 

2Ug  bie  erfte  (S5rccnbacf=^ill  beratben  wurbe,  erflarte_bcr  iuMiigtr  beg  ginanj-Slugfcbulffg, 
ba§  eg  nur  beabficbtigt  let  SI 50,000  000  isaeiniate  ^^taaten-Ototcn  aui^jugeben  unb  _ba§ 
f.iner  Ulnfid)t  nacb  nidn  mct;r  ulj  bia  icin  toiirtm.  tocb,  entgcgen  bicicrauggefprod)enen21n|icbt, 
mupten  einejweite  nnf  eine  britte  ^^ugaabc  brr  gleicbcn  Summe  balb  fol  en  unb  inuer^alb 
einfg  3at)rfg  t«om  25.  gebruar  1862  wuvten  $150,000,00  -  ®reenbacfg  antonfirt. 

Sd^nellc  €ntit?crtl)ung  ber  (5reenbacfs. 

Tie  fdjnede  unb  gro§c  gntwertbung  biefcg  Souranfgelbeg  unb  bie  atlgemeine  SBtranbrrung 
nOer  aBrrtbc  aUeg  fiigentbume  ift  moblbef.innt.  ..^     ^  ^  ^ 

eg  lollte  tod)  fc^cincn  alg  ob  tit  Ucbcl  eincg  foId)cn  ungeroiffen  Sourantg  wabrenb  bfg 
*J?iirgerfriegeg  fo  gro§  waren  unb  «or  fo  fnrjer  :]cit  bcftanben,  urn  jcbcn  t^nind)  jnr  .^{urffc[)r  ju 


tftn  Sofleme,  lai  fie  l>et»orbrncfctf,  unmij(»lid>  ju  mndbcn.  5Pn«  unter  btm  3''>''"fl'  ^^^  *-0"r- 
(^frfrirar^  ireife  unt  notbrpentti^  m  fetn  I'diitii,  joUte  ffgit  iinnothia  uno  unweife  rrfrbeinftt. 

Tit  Urbtbcr  ber  erftcu  ®reenbatf>?  fiibltcn  tie  iJiotbnjenbiiifcit  in  ein\iilofeii.  uiic  ba  ti  an 
ten  nl'ibtaen  Wiiiuen  bafitr  feblte,  nnirte  oerfui^t,  bai?  il;  fiir  'JJJiiii^  C;Soin«)'i3oiir^  niii^fnoin- 
iiirn  luib  iimactBecbielt  roertfii  ti>iinrfii.  I'te  iduieUe  Siitroertbiinfl  ficier  OJotcn,  iroti  iiviai'  bieitr 
•SVuiiiittfti,  tft  ein  Ibeil  einer  njoblbefaiuUen  ©cictidjte.  Die  'O^otbiventi^feit  lie  eiiniilbfcn  unb 
t.itiml)  ten  bjfeitilidjcn  Sreoit  ju  ftarfen,  ftelltc  ftcb  fcbiicH  bcraiie  into  tcii  iiJerf  ber  Stnliiiunfl 
rcllr^f  bnlb  md)  bemSiue  beg  .vrrici^f?  in  5lug|icbt  genommen 

^ladi  ber  ®ifCcraufnab:ne  ber  l^aar}rtblnnaen  in  187!)  wurbe  ba^  3Sertraucn  in  ben 
■jyerib  ter  Tikeenbacfi*  (o  alUieineiii,  f.i§  fie  nicbi  bic  Qiic'le  enifter  '^i-fiircbtuni^en  ober  fSkf.ibren 
wiirten  bie  wabrenb  ber  jtweiten  Slbminiftrntion  be?  ^V^'iiibrnten  ^5le•flan^,  nliJ  in  Jvol^e  tcr 
fcbiiellen  3wn<ibme  unfirea  5l?orratbeg  nn  billiiiem  f^elte  biaii  bie  VliifiUife  von  Silber  niiifr 
tern  (yefrfe  con  1890  unb  ber  ^ermintcrunt^  ber  JKeiiieiuntiiJcinnabnien,  3>^'f'Tf'  'T'  bfr 
^'ibluncjefabijlfn't  be?  ^cbagiimt^  unb  ber  /"^liib  i^feit  ber  :)ieijierun^,  (i>)t>lb  fiir  Ci3reenbade  nut 
antere  „'I)emanb"s9icteu  ju  geben,  auftflu^ite 

Was  u?ie^cr  fommcn  fonnte. 

3tvifct)en  bem  I.  3wlt  1892  unb  bem  1.  3iilt  18117  ivurben  Si.')5,0?5,817  in  «3olbmiinje 
nuf  S^erlanflen  »on  3nbnbern  »on  ft5reenbacfa  ouo  bem  ^.taBninte  ije^oiun.  Obgletcb  bie 
.'Ifeaieruni^  me!)r  n\i  ben  2i?ertb  ber  9?L'tfu  in  ®oIt  nuebcjablt  bat,  i\t  bag  i'olumen  berfelben 
uuverminbert.  Xicg  ifl  eine  ^Unftratiou  ber  iJlrbeit  bev  „entlcien  ilette",  unb  illiiftrirt  xvao  iicb 
UMibcr  ereii^nen  mag,  »enn  ber  Srebit  unferer  Stegieruna  in  ^''f""!' flf^frf)™!!*!  fein,  ober  ein 
3!>>eifrl  iibcr  ibre  Slbfidbien  unb  J^iibiiitf'ten,  bie  2lugwei:b|clung  von  ®olb  gegen  i^re 
?,i)emanb'=9?oten  oorjunetimcn,  entftebeu  foUte 

di  ifl  eine  bejei(^nenbe  Jfjatfacbe,  welcbe  bem  intefliiienten  Seobadbter  nid^t  entgelit,  ba§ 
tie  ?»efiirn3orter  son  mebr  ^^at'iergelb  bie  Seute  finb,  teeldie  an  bie  S^jreivra.;ung  \>on  Silber 
rtlauben  unb  fie  befiirtoorten.  Tie  "J.V'litif,  mebr  ®rcenbacfg  nng^ugeben,  i)(it  tbre  SBiirjeIn  in 
remfelben  3"'^'^^'  ""b  ber  ifi:  „5"illii^ei?  (ijrlt'."  Die  ^(nggabe  von  uneinliJgbarrm  "Pap'er- 
iielbe,  bem  3n>ai'flv*jablunflgfraft  verlicben,  in  geniiqenben  Cuantitaien,  wiirbe  feinen  (Siletct- 
roertl)  mit  (SJolb  vcrliercn,  (Sjelb  nuf  ein  ^-'ramium  unf  fohilid)  au<3  ber  Sirculaticn  yertreiben. 
Tagwiirbeben  2Deg  jur  freien  iSilberp>a\iung  erijffnen.  Gg  fcbeint  mir,  ba§  bicfe  Slbfictjt, 
nnfer  (Sourani  iiberma§ig  ju  oermebren,  nittt  nur  an-?_bem  auf^eblidien  S5?unfct  e  entftanben  ift, 
.{tngjablnng  nuf  Sonbg  \n  vermeiben,  benn  bie  i^nieiefT.n  fint  terbiiUnifima^iii  nicbt  vonbcbem 
iktrage,  fonbern  in  ber  .^cffnung  unb  beftimmten  Srwarruna,  ba§  bie  S.icbc  tta  freien  ©ilbere 
burcb  bie  3f''fi<'i'"ng  unfereg  (iourantg  gefijrbert  roeroen  roiirbe.  Dag  wiirbt  o(>Ke  3»t'f*l  ^i* 
Direftt,  natiirlic^e,  logifc^e  (Jolge  ber  oorgefcblagenen  •')}?a9nabine  |ein. 


Achtbaren  KNUTE  NELSON, 

9icpub(ifaiicr  Don  9J2iiinr}ota. 

®ef)Qlten  im  ^^unbcc-fenatc  am  2G.   gjioi  1898. 

lOk  (5olb  bard?  (Brccubacfs  aus  bem  Buubcsfd^a^c  gcl^olt  * 

mirbc. 

t)txx  ^raftbent,  t^  mbcbte  fiir  etnige    2lugeiib(icfe  hie  oorgefcblagene    Sluggebung  con 
weileren  $15'»0;K),0lK)  (SJreenbarfg  alg  ^iJcreinigte  ictaaten  Sc^agamtenoten  erbrtcrn.  3d)  be- 
trad)te  lieg  alg  einen  ber  i»id)tigften  ^^unfte,  urn  bic  eg  ficb  in  ber  vorliegenben  33ifl  banbelt,   » 
unb  um  bag,  wag  td>  iiber  ben  'yegeni'tano  ju  f^igen  bat%  in  gebran^tcr  iliirje  vorjubringeii, 
^>abe  iH)  ti  jn  ^a\)itx  gebrad^t.  * 


Tie  frftf  ?Ui?uabf  von  SStreinifttrn  etantrn  JdiflB'inueiu'tcii  gffd)n[)  uiitcr  brm  fliffr^  »cm 
f^ct'rnar  18f)2.  f  er  diigiiftjenbe  3?ctrafl  toar  am  bedd'tcii  in  18()i,  al«  cr  tid)  auf  ■>ii7,3()0,20:i 
belief  geit  1878  betraat  tic  au^ftcbcube  ^Tettofummc  $;iir>,(i81,()lf).  3n  adem  ift  rat^fqecieben 
unb  tvtebfr  niu^^caeben  cine  cycftimmiuimnie  son  $2,876,02(»,r2H  ot-er  cine  Oimntil.'it,  wcliic 
beinabc  8  3  '3}?al  ben  .^u  inunb  einer  3eit  [eit  1878  auei|"te[)cnben  i^.  Uan  rncicbt.  i^iefe  9?oteit 
mii(jtenn(iJ  3<i^l»"<1 'T»!ltnotnnien  tverbeu  fiit  alle  ateuern  unb  fJait'iiteii  Sibqaben,  nuctiu* 
nonimen  BiiUe.  @tii  bcni  .]().  ;luni  1879  ftnb  1,477,766,753  einiieliJit  luyiben,  aber  oon  bicf  r 
Stnllifiinfl  ftnb  $516,(130,273  auf  i^crdinqcji  burcb  bircrte  ©olbjabluna  an  bie  3iil)abfr  einac^ 
lijft  ttjorben.  ©eit  biefer  birectcn  (s)olbeinliJfung  wiuCeu  nur  g43,3lo,<)i)6  in  ber  ^tit  jmilitcii 
beni  1.  3ult  1879  unb  bem  1.  3it!i  1892  rtcinacbt,  unb  feit  bem  1.  3ult  1897  bt^  jii  bem  aegen- 
toiutiiien  ^eitpunft  finb  nur  $21,523,315  eingcilift  worbcn. 

Taaci^en  tDurben  in  bem  ftinffabriqcn  ^f'tfiiitin  »oni  t.  3u(i  1892  bii  jum  1.  3uli 
1897  auf  5J3etlaniicn  bet  3nt)abet  |451, 190,132  bireci  in  ®oIb  einaelijft.  Da«  macbf  tin 
Turcbfd'nitt  «90,(i(K),uU0  im  3a^r  eber  nur  $10,000,000  roeniiicr  ali  ber  (yoIbeinliifungSfoiib. 
ber  infiiriebefffu  in  j'ener  3ttt  einmal  tm  3abre  serbo'^peU  roerben  muOte.  SBabvcnb  ^tc•cv, 
Slllen  crinncrliiten  ^^eriobc  fcblecbter  3ftff»  wurbc  baiS  ^ibaBimt  al^  basJ  9lejer»Dir  unb  bi: 
@5rccnbarfi?  aU  ba3  JBerf^euq  beljanDelt,  urn  bie  ubcr:u.i§iiic  *Wa±fraqe  unferc^  thihi  nad) 
(SJolb  \n  bcfiifbiflcn.  Diefe  iibermagiiic  unb  uui^iemobulicbe  03i):cfnUieb«n(;  battc  ibren  (SJruno 
»  rntbntiiit  in  jn-ei  Urfacjjcu.  ©ie  entfpranij  junaiijft  ber -'turc^t,  ba§  bie  iibernui'isioe  ^ilbcr> 
anfdbtxHllunn  unt^r  bem  ^kfeu  von  1890  e^  unferer  ^Iteiiicruuii  unmoqii't  macfieu  {i)untc,  bie 
^Parital  uitforr  ^ilbrrunilau'f^mittel  mit  ®oIb  nufreditutcrbalten.  'Dicfe  3u>-cbt,  ba(j  roir  auf 
fi..fv  giiberbafiiJ  anlan^cu  fiMinten,  fiibrte  oieic  l^eutc  baju,  (yolb  fit:  ^ilufbewa^runa^jroccfe  ju 
[u(i(»ci. 

5:ebann  (aii  ber  (S5oIb''ac^fra.u  jium  aro§e«  Ibctfe  ber  3wecf  ^n  (SJrunbe,  fine  wnijitnftii^e 
^antelebiian^  g,i\i  ju  niacbfu.  Unb  babct  mcine  tc^  eine  un^iiuilicie  $anbel3bilauj  son  alien 
IranvMctionen  mit  au-?tt>.uiiiien  I'anbcrn,.  ob  fie  nun  «om  t>antcl  ocer  oon  Srebiten  ficrriibren, 
beun  ade  intcruatioiialen  'l^ilan\en  ttcrbeu  mit  (^olD  auJifiilit^cn.  «at  bem  1.  3iili  18:17  ift 
uufcr  t'rrfaubt  von  'i3rebftoffen  unb  anbercit  l>roc>uftcn  nad)  bem  ?lu<lanbc  ju  boben  *Prcifen 
unb  in  jiroOcr  Wencje  fo  ftarf  lUiocfen,  bi§  D.irurd)  bie  c»anbeI^bilan,H't'*  iju  unferen  ©uuften 
flfftaltet^"  unb  ung  #inci  bctv.iDi'ien  '^^olb^uflug  (;ebraci;t  bat,  ber  nod)  griigcr  gewefcu  fein 
Wiitbe  weun  nidjt  bie  (iveMtbilan\  in  G  ixwa  ae^en  un?  cjewefen  mare. 

'Eiefer  i?rogc  bierburrb  bebin,Ue  (s3olbjurlu«  t)at  bie  OolbcinliJiuuti  unferer  ©reenbacf^ 
bfinabc  auf  cine  ncvmaic  t^i\\ii  bcruutcri^icbvachr.  Slllcin  bie  ^3erlt.vltniiTe  be5  yerfloiTencn 
3abrei5  mareu  fo  uiuicmobiilid)  giiiiftiije,  namentlid)  ma5  '.Brobiioffeanbetrifft,  ba§  roi  fiiiilid) 
nidjt  auf  ibre  (\ortbaucr  ledinen  uub'fte  auc^  uid)t  ;\ur  23afij  unferer  ^^eieitiniUjien  brtreff^ 
ber  Slufrecbtorb.iltiinq  ber  (iiolbrefcrue  madjen  fi)n  ten.  i5orfid)t  u^ib  J'tluibeit  folUcn  nni 
elier  baju  leiten,  uiifcre  Sercd)  uugcn  auf  bie  'JBict'-rfebr  fol.ter  b^ten  ^tiun  unb  fold>t. 
briictenbcn  i^erljaltniffe  ju  bafiren,  »»ic  wir  fie  vou  1892  biiJ  1897  t)attcn. 

Was  unfcre  Xlokn  finb. 

Uttftre  ?rfnftimtt^rtotenfinb  nic^t  nur  c'ne  qemiffe  ^rt  oon  (S)e(b,  fonbern  fie  ftnb  aud^ 
®tt)ulbfc^etnf,  railel'en«!nad)Weife.  511*5  blo^e^  ®arlc()en  belfc"  ober  niiKcn  fie  tvenis],  e^  fii 
benn,  bag  bie  (Jinibiut^  ,^eit»eifc  einaeftillt  i\t,  mt  eg  roabrenb  bf>5  .'Kibellion^friesK^  ber 
y^aH  rcar.  i\}t\u\  ber  3nb,iber  jcbcrsfit  3ablunq  weiiancien  faun,  fo  iit  bie  .-({cA'crunfl  i]fJ>»""' 
pen,  aUf\rit  cincn  bradiliei^eubcn  J^uub  f'lr  Gtuloiuii(i3u»ccfe  an  Jbaub  ^u  b ilten.  Denn  ali> 
bloger  ecbiilbncr  nimmt  fie  ben  5d)aRamti<nute-i  acqenitber  btcfelbe  2te.luin  eiu,  roic  rt;c 
2?anf  ibreii  X>epofitoten  ober  ibren  jKedinunq^inbabern  gcaeniiber.  Sie  tann  nidit  tatu  ib 
rinlijfcn,  bafi  fie  nciie  '^jlotm  ahnlitfr  fficife  gtbt,  benn  baa  ^iepe  eiufad),  a  la  ^JJhuiiu.'c 
fiucn  5d)tiltidj.iii  far  euuu  aubcicn  gel'en. 

Xlokn  in  Znun5c  5ablbar. 

Die  3tenterun(?  mu§  notfe.iet'runqen  in  gemiinjten  «3elber  einllMcn,  uttb  tcdjnifc^  fann 
fie  in  beiben  gjJiin^arten,  entWiber  in  ®olb  ober  in  i^iiba  ciulofen.  ©area  Die  beibcn  We 
tade  in  fid)  felbft  cileid).vertbiq,  b.inn  nja're  bie  JJJiqteiunq  qeredjtfcrtiat,  ineni  fie^D"-'  brm 
tcbnifdjcn  ^Hnbt,  ^a-iiunun  in  bcm  cinen  ooer  in  bem  aiocren  -rjetill  ju  mutcit,  (SJcbr.uid) 
niaa)te    -ll.in  ftcbt'aber  ^ilber,  f  iuem  i'lnrr  idjcn  toic  icin.'m   'Danbdeinjertb  nac^,  unter  oem 


10 

(^elbrotrtb,  unfc  t^xmi  ergitbt  ftd&  fur  bfe  9le<?ifruttg  bit  rfcl)tlt(^e  unb  bit  moraIt(t^»t  3?(r- 
I'flic^tung,  unffr  etlbergflb  (^\tiii)votx\i)\(^  mtt  @o!b  jii  erbalttn. 

Dftn  Snb.ibcr  einer  54-'6amt3note  fommt  tS  nic^t  nur  bnrauf  an,  ba§  feint  9lott  eiitgt' 
liift  »irb,  fg  fommt  ibm  an^  barauf  an,  ba§  bitfclbt  ttnflflbjl  uiib  tinlbi<bar  get)altfn  wirb  ju 
btm  2Bfrfb  unftrt?  bcjitn  ®tlttt^,  ba^i'tniqt,  wtldbti  con  ficf)  felbft  au6  am  bochjitit  ftebt, 
unb  ba^  tft  (5)oIb.  (So!b  ill  notbwenbti^crmfife  unb  btm  rcabrcn  Sacbvcrb  ilt  nad),  btr  tin^iflt 
wabrt  ffiertbmnjcr  btr  *}Jarit.iit.  Urn  Dteje  'Paritat  aufrecbtjucrbalteii,  mu§  tit  Jt^itrung  ftttg 
btrtil  unb  im  .sstanbt  jein,  ibrt  9?otcn  auf  i^trianiicn  mit  bicftm  ^iflb  (Siolb  —  ba«  in  fic^ 
felbft  btn  bbijten  2Bcrt^  bcfipt,  tin^ulijfen.  SBjnn  bic  9ltiiieruUii  fi4  reei^^ert,  mit  ibrem  btfien 
(Selbe  einjuliJien,  wenn  folcbc^  oerianat  mtrb,  fo  brinqt  fie  fcbon  burcb  biefe  §inMunav<i»eife  ibr 
'^)clb  son  aertngerem  innerlicbem  JBertb  in  'DJJi^crebit,  unc  wenn  fi«  barauf  beflcbt,  mit 
billtaertm  f53elbe  einlbfen  ju  rootlen,  fo  macit  fte  tbatfa($li(^  biefe^  ju  btin  ftttjtnbtn  JBertb- 
mtiJer,  unb  mit  ter  latitat  ber  beiben  iUJetadt  ali  (Delb  ift  ti  oorbti. 

Xiokn  ftnb  (5oIbfd]iiIben. 

Dtmnadj)  legt  bit  Slu^ftnbung  bitfcr  9?a(^frngt  -  S4a0amtgnoten  btr  SRtgitrung  tint 
bci>t>eltt  ^afl  auf:  trfteng  cit  *pflid)t  unb  Saft  tinta  Sanfier^,  btr  fiir  feint  Dtpojitoren  unb 
:Kfibnung^inbabtr  fiet^  einen  au^reict)tnben  Sinlbfung3-3onb  an  C>''<"t>  ^aben  map,  jroeiteni? 
bie  ^rfliitt  unb  Die  I'afi  be^  jlinanj-  unb  J^t^cuS-iJigenttn  unferer  9?ation,  btr  bitit  9?oteu  alJ 
fWelb  auf  aleidjen  2Bertb  mit  unferem  bcfien  (SJelb,  @olb,  erbaltcn  mnp.  !D?it  anbcren  ®orten: 
bic  Stegieruiifl  mu§  bitfe  Stba^amt^noten  lomobl  ali  ®($ulbfi±eine  wie  aii  ®elb  aufrecbtevbalttn 
unb,  um  fte  ali  folc^e  aufrecbtjutrbalitn,  mup  fit  ftetd  tintn  au^rtic()tnben  (SJolbrefcrut' jonb  an 
^anb  baben. 

Ciefe  Ofibtn  Safttn  unb  ^flidbten  (tub  ftboj^  »on  tintm  fd&tt>anftnbtn  unb  uniic^trtn 
fi^-l'ragt  uon  alltrbanb  SBebingungen  unb  Umft.iinben  obbangig,  TOtlcbt  fii^  btr  (SontroKt  unb 
Veitung  btr  Ottgitruug  ooUfommtn  tnt^eben.  Sin  Sanfier  fann  nit  mit  "Seitimmtbcit  ben 
i^etrag  ber  ^orberungrn  i.'orau3feben,  toclcbe  bit  Drpoutortn  unb  JHtiinung^iinbaber  ju  tiuer 
bcfttmmttn  3*i* 'in  ibn  ftellen  merben.  3n  guten,  gliicflicben  ^tiUn  wtrbPn  bie  )lorberungcn 
mapig,  in  ^arten,  fcblimmcn  3fittn  tcerben  fie  iibtrmoipig  fein,  unb  jur  3eit  eintr  ^anif  tocrotn 
fit  auf  tint  oollftiuibiat  ^r^trbtcrung  ^inau^laufen.  3n  guten  ^,iittn  barf  cie  ^'Tieferoe  gujammen- 
fcbmtlgtn,  abtr  in  fcbltcbteu  ^tittn  mug  fit  ftarf  unb  reic^  fein,  benn  baun  pflegen  grb^eve 
5lnforberunaen  an  fie  geftellt  ;iu  roerben.  Uufere  gcfunben  ^Sanfen  batten  uiema'3  fo  ftarte 
?){eferoen  wie  tn  tin  fctjlecbten  ^tittn  con  18!I3,  1894  unb  1893.  3i)re  JKcfcrotn  njaren  fo  gro§, 
t.i§  ibrt  tepofiten  ibnen  fcine  fubftantiellen  'Profite  einbrac^ten. 

Unb  fo  ift  ti  mit  ber  jRegieruna  al3  blopem  ^acbultncr  ibren  9te(inun,^3inbabern  gtgtn- 
iibtr.  3n  3^''^"  atlgtmeiner  ©obU'abrt  famen  roenig  51nfragen  roegen  Sinlbfuni  i>or,  unb  bie 
(Circulation  tfi  ftart ;  in  fdjlet^tea  3etten  laufen  bie  51nfragen  roegeniiinldi'anA  im  Uebtrmafe  tin, 
Uiit  bie  ilirculation  ift  nomiiuU.  Sine  'Jinomalit  abtr  gitbt  t^,  mcldjc  ber  JWegicrung  i^u  f^taffeii 
macbt,  wabrcnb  bie  33.inf  ba»on  frei  ift.  Die  Jte^ieruug  mag  einlbfen  fo  »iel  fie  mill,  fie  tsirt 
mit  bcm  Smlijfen  niental^  fertig,  benn  nad)  tem  ©efe^  muR  fie  jeoe  'T?ote,  fobjlb  fie  biefelbe 
eiiigelbft  bit,  iviettr  au-Jgeten.  X)er  Sanf  nimmt  bie  Sinlbfun^  eine  I'aft  ab  ;  fur  bit  Stegic- 
rung  bcbcutet  in  '-Be^ug  auf  ibre  ©diagamtiSitoten  Sinibfuttg  b.ir3)iu3  feine  Srlofung. 

"  ^ti  ber  "fianf  mag  tie  Si:i(b|urtg^nacbfrage  unAen>t|  unb  fcb'.oanfenb  fein  ;  fit  ^at  abtr 
ibvt  ®rtnjt.  *^fi  ber  jHegicruag  ift  fie  nic^t  nur  ungeiuiB,  fonbern  an:i)  gerate^u  grcnjenlo^, 
unb  e^  iH  biefe  Ibi'i'ifbe,  rocltbe  unferer  jRegierung  mebr  feutmungen  unb  i^erlegenbciten 
bereitet,  a\i  irgcno  et.»a<  auterca.  Sie  iil'ergicbt  fie  auf  ''yitabe  unb  lln^naoe  uoUftanDig  ben 
Viunen  unb  ^cd  irfniijcn  ber  "J?ottntn^)aber,  bie  in  ber  3'icgtl  ji4)  con  i^rtm  eigtntn  ftlbftfiid)ti- 
gcn  3'^frff"  leiltn  Icffcn. 

"Xie  i'erpflicttung,  bifftn  grtnjtnlofrn  Sinlbfung3na4frage  ju  btfritbtgtn,  toirb  baburcj) 
nodt  trfcbnjfrt,  ba§  info  ge  ber  ©crtbtjerfcbiebenbeit  ber  \toti  '3J?etalle  uiib  urn  bie  JBtrtbgleic^' 
btit  aufredstu'erb.iltcn,  ber  Sinlofungefonb  in  (■^olb  gebalten  merten  mufi.  Die  9tcgierung  »er> 
mag  ten  ®olt;uflug  ui(t)t  !iinftlicb  ju  regeln,  au^genommtnturcb  Slnfauf.  2lbgefeben  i^on  biefem 
bangt  ba?  Sinflrbmcn  unb  !.Uui?ftrbmcn  bc^  (SJolbe^  lebiglit^  son  bem  f  >inbelgoerfebr  unb  son 
ben  ®cfdjafti5serbaltnii|en  ab.  sHJcun  bie  frgcnannte  ^anbel^bilang  im  ®.inge  unb  giinftig  ifi, 
werben  wir  nac^  Wayftab  biefer  iBilanj  tinen  cyolbabflup  b'^btn.  3Bir  finb  noct  immer  tint 
fcbulbtnbt  9?ation,  unb  auf  tint  9itibt  con  3abrtn  ^inaui  »irb  in  biefem  Setracbt  bie 
^^ilanj  gegen  un?  fein.  ©ir  tserben  bteft  33i(anj  ubtrwinbtn  miiijtn  buret  bit  nni  giinftigt 
i^ilanj  auvS  bem  iJtrfauf  unferer  ^^robucte,  5){oi>probuite  unb  ij'ibrifi^cr^cugniije  —  unb  erfl 


11 

ber  UfberfcbuB  foI($er  SBtlanj  iibet  bie  (5rcbttbt(anj  gifbt  un«  bit  fubjlarttieae  Silanj,   tttldbe 
bfit  ®olb;(ufluf!  brirtflt. 

9?acbbfnffn  lebri  un«  j'ebocb,  ba§  unfere  $anbe[gbilnn}  auf  mi'iibfften«  jiwei  ©runblngen 
rubt,  sen  minbeftftt^  j»ft  3ii!;fbortqfciten  abbanqt,  trfiend  son  unferer  ^;ol>uctiongfabiAJttt 
m  jebem  a«i;ebeueit  j.ibr,  unb  jmeitfn>5  »ou  ber  9iac^fraqe  nacb  uuffrem  Ufber|cbu§  im  ^\xi-- 
laiibe.  1)urfttfle  uno  ftuupe  (Written  babeim,  nnb  rficblii:bf.  aug.^ieln9e  Srntcn  im  5lu^laitb 
finb  unfcblbar  baju  antjctban,  uni  etne  Sbbe  ui  brinaen-  Hub  bcrartii^e  ungitnfiige  2?cr- 
^altnijfe  fonnen  toix  weber  corau^jeljfn,  noc^  aufb  ilteii,  noc(>  uit^  ^tacn  fte  fciju^en. 

lDol]er  ^ie  Hcgterung  <5o\b  erl^dlt. 

Unb  ba  ift  nodb  «i"  anberer  Beac^tenSroert^er  factor,  mit  ttelc^em  gered^nct  roerben 
muft,  id^  meine  ben,  ba§  ber  ©olbiiberfluft  au^  4)anbel€urfacl^en  nic^t  notl^iBenbiger^ 
jucife  ®oIb  in  ba^  ©rfjatjamt  bringt :  benn  ein  ©efej,  rcelc^e^  nerlangt,  bafs  bie  9iegie= 
rung  in  ©olb  beja^It  luerbe,  befte'^t  nid^t,  nic^t  einniat  fur  ?)'oUt.  ®^  gtebt  ■^dun  unb 
fie  niogen  fic^  tjiiufig  ii)ieberf)oIen,  roo  unfere  i9anfen  unb  ©elbinftitute  fief)  genotigt  fe; 
lien,  ibren  ©olDoovrat^  auf  eine  ungeiob^nlic^e  $oE)e  f)inauf,iabvingen,  unb  }u  biefem 
'•Ue^ufe  mbgen  biefe  I^nftitute  uoriiberge^enb  ben  an^  unferer  ^anbelsbilanj  fommenben 
©olbjiufluf)  abfangen,  ablaben  unb  auffaugen. 

9}lan  fie^t  nlfo,  bafe  unfere  3f{egierung  in  ^infic^t  i^re^  ®otbetnIofung§fonb6  an 
einer  Soppelfperre  ju  leiben  ^at,  einet  ungiinftigen  ibanbelsbifanj  unb  einer  ungemo^u: 
lic^  ftarfen  ®olona(|frage  im  ^nlanb.  2UIe  biefe  ^erbciltniffe  unb  ^"f'iUifl'f^iten,  bie  icf) 
ebeu  furj  angebeutet  bnbe,  jeigen,  toie  unbeftdnbig,  unjuuertaifig  unb  unfic^er  unb  won 
wa%  fiir  einem  jtoeifel^aftem,  S5erlegenf)eiten  bereitenben  SC)arafter  folc^e  ©d^a^amtss 
uoteix  finb,  aii  sinleifje  foit)of)t  roie  a[^  (Selbumlaafsmittel. 

IPie  leid^t  eine  panif  fommen  fawn. 

SBie  e€  im  SCalb  gcroiffe  SBaume  giebt,  raeld^e  bie  (gigenfdbaft  beft^en,  au§  ben 
©turmiBolfen  be^  ^immel^  !Eionnertei[e  nad^  bem  'ihifen  ber  ©rbe  [)ernbju(eiten  unb  «o 
'4?ern)itftuug  unb  iBerbeeniug  an^urid^ten,  fo  ift  es  mit  biefem  ©elbumlaufemittel.  ©^ 
fann  fo  leicbt  unb  io  rafcf)  eiu  Wittd  luerben,  3™'^'^'=''  iBebenten,  Stodung  unb  Unf)eit 
aug  bem  ©turmgeiuotf  ber  ^inanj(=  unb  ©elbiuelt  berabjujiiefien.  d^  tann  ju  einer  Sanb» 
hdbt  gemac^t  inevben,  um  bie  ®olbuafen  au^uifcbbpfen,  urn  bie  ^aritcit  unfere6  ©elbe^ 
Ml  i^erftoren  unb  um  uuS  auf  eine  fc^ioanfenbe,  uerdnberlid)e,  entraertfjete  ©ilberbafiS 
^erunterjubriugen. 

2)ie  gebriicften,  ©efd^iift^ftiaftanb  unb  ^aui!  mit  fit^  Bringenben  ^eiten  con  1893 
unb  I8&4  "[jaben  un^  biefe  i^atfac^e  jur  ©eniige  beioiefen.  ©ie  Sebre,  loelcfie  fene  bunfle, 
tciibfelige  Xage,  mit  i^rer  unbeituollen,  auegefiibrten  unb  ongebrobten  3erftorung^= 
arbeit  un3  ertbeilt  baben,  follte  nicbt  fo  Ieid)t  in  Dcifjact/tung  ober  i^ergeffentjeit  gera= 
ratben.  Sas  2lnbenfen  an  fie  follte  uu«  su  grbfeerer  ©orgfalt,  illugbeit  unb  Umficbt 
antreiben.  3)ie  Sieget,  metcbe  ein  pevftanbiger  ©efcbdft^maun  auf  feine  eigene  ^Ingele^ 
genbeiten  anioenbet,  foUte  un^  in  biefcr  entfdieibungsfc^iDeren  Sage  jur  3fiicbtfcbnur 
bienen. 

Die  (5efdl]rlid)feit  ber  ^or&erung5=(Dcmanb=)Hoten. 

3Burbe  ein  bebtlcbtiger,  oorforglid^er  5?aufmann,  bem  e§an  33etrieB§IapitaI  febit 
unb  5U  borgen  luiinfcbt,  um  einer  mabrfcbeinticb  fleinen  3ingerfparni«  rciUen  eine 
grofee  ^Inteiije  riofiren,  bie  ouf  Jyorberung  in  ®o(b  ^ni}\bav  ift,  ober  rourbe  er  em  t)er» 
niinftige^  Reitbarleben  ?u  einem  niebrigen  Binsfufj  uorjieben.  5hemanb  tann  baruber 
im  Bm'eifei  fein,  luelcben  2Ceg  ber  ajjann  unter  folcben  Umftanben  emfcblagen  nnirbe 
(fr  luiirbe  ba^  ^eitbavteben  mit  feinen  3inien  bem  uon  Siueifet,  Ungeroifjbeit  unb  »e  = 
forguift  umgebenen  ?forberung?.=2)arrebcn  norsieben.  ®a!3  ^^fovberung'f.^Xarlebon  fonnte 
baju  bienen,  if)"  fopfiiber  unb  unuerieben6  in  ilianterott  ^i  fturjen,  falls  bie  >?erUofig  = 


12 

feit  ober  bn§  Seburfuijj  beg  ®laubigcr§  i^n  jroiugen  iolltc,  .'^n^Iuna  ber  9(nfet^e  ju 

nerlangen. 

Xie  3i"^^"  f'"^  ^^^  ^^\t■■X(^vlciiin  ftub  cine  rocififaiigeteijte  SSerfttljermig'.n'vamie 
gcgen  W^e^  gjiifigeic^icf.  2)tt0  3{ififo  einer  ^orberuugocinleifje  ift  abev  fiiv  bie  ^Kegie: 
rung  fogar  noc^  gvofeer  tt(§  fiir  eiu  ^ubinibiiuin,  benn  eo  fc^licfU  in  fic^  bie  "•^lii'iecijtev: 
^altung  einer  au^reidjenben  (^olbveierDe  unb  ber  ^aritat  tini'erer  @olbeg:~ivfIicljten, 
roelc^e  bem  ^"biuibmtnt  nidjt  ^utaKen.  Sie  ©reenbacf^  =  ^Uiegaben  roo^renb  bes 
Hriei^e^  roaren  er.^roungene,  nic()t  ^inientragenbe  "Jlnleihen,  bie  nirtjt  anf  ^yorbernng  su 
ja^len  traren.  Sie  3iegiening  fagte  cinfiuf)  :  ,,2Gir  fbnnen  biefe  3loten  nidjt  einlijien 
Dor  9(blnuf  be3  Jlrieges  unb  bi'o  luir  nuo  uon  ben  Jv^-ilgen  be^felben  erfptt  |)aben,  luolien 
bieielben  aber  in  ber  3wiic^e"3eit  fiir  alle  Slegierungsabgaben,  au^genommen  Q'dllt,  in 
3n^Iung  annef)men. 

(5rccnbacfs  maren  gipangsgel^  nnb  fet]r  tf^eurcs. 

2)ieie  3ln[ei^e  entftanb  unb  loar  gerec^tfertigt  burc^  bie  Jliiegebebiirfniffe,  aber  e^ 
nnterliegt  teineni  ^rvcihl,  baB  bi5  jur  '5lMeberaufnat)nie  ber  '-yaarsttt)[ungen  i^re  Se= 
laftung  in  j^olge  i^ieo  SBcrtfjuerluftes  lueit  grij^er  luar  a[<j  bie  burc'g  bie  Gifculntion  ge= 
ipartcn  3i»ie»-  'i'<on  alien  itni'eren  ^riegeanleifien,  uon  ber  crften  bi5  5ur  leiuen,  roar 
bieie  oljne  ^'I'sifff  ^'^  toUfpieligfte.  ^bve  Stec^tfertigung  lag  barin,  bnij  fie  fiiv  ben 
2(ngenblicf  eine  i;iicte  ausfitllte,  t)ie  biirc^  ein  3fiii''iri£f/en  nic^t  leic^t  ^dtte  ausgefiiUt 
iverben  fonnen. 

9lber  bicfe  5totennu?'gabe  ini  te^ten  ^rteg  !ann  itn§  feiiien  ^racebensfafl  abgcben 
fur  bie  von  ber  9Jie()rl)eit  bee  GonimitteeQ  vorgeidjlagene  '3!otenau6gebung.  2ic  Rriego: 
Oreenbttd^  rcaren  ein  nnbeftintmtes  3'^ifbarleben  nnb  begriffen  tinter  ben  bamaligen 
3eitiier^altntffen  nic^t  bie  9lufred)terl)nltung  ber  ^aritat  unlere^  ©olbc^  in  fid),  benn 
banialo  ftanben  iDir  anf  einer  reinen  'iUnpievbttfi?).  itein  ucrniinftiger  9J?enid)  uerlangt 
fieutjutage  einen  foldien  ©reenbacf,  ber  nidit  in  unfereni  Ji>ahningogelb  ja^Ibar  ift.  Unicr 
friiherer  33rauc^  unb  C5rfnf)rung  jeigen,  bafe  eine  roeitere  9[nog\ibe  uon  <^l.")i),nOO,000  in 
Sd)a^nntt5noteu  einen  inetteven  pennanenten  0olbeinioh!ng'ofonb^  uon  :?43,00(',()O() 
iii)tbig  mad)en  unirbe,  fo  bafe  ber  5^ctlbetrng  be^  auS  biefeu  9iotenau§gabe  enuad^fenben 
©dbunilaufo  fid)  anf  $107,0('0,(00  belaufen  luiirbe. 

Xieier  :i3etrflg  ift  jebod)  nte[)r  ein  fdjeinbarer  a[§  ein  iriivFIid)cr.  3"  g:iten  3etten 
mit  einer  giinfligen  .v>anbe[c4iilan,^,  luie  in  '"em  je^U  ftiinem  linbe  cutgegengcbenben  g-io^ 
caljafir,  loiirbe  bieier  iktrag  ungefa()r  ba^  IWif;  De'S  Unilaufe^j  abgebeu,  abev  in  fold)en 
3i'itlduften  luie  uon  181)2  bie  IclC,  nnivbe  ber  Ilntlauf  loeit  geringer  fein,  benn  e§  iciirbe 
bann  ein  beftiinMgee  (Sinlijien  unb  2Bieberauoienben  ilattfinbon  nitt  einein  beftdnbigeu 
S^Jec^fel  unb  Sdjninnfen  in  ber  Circulation,  unb  bie  5toften  ber  ^lufrec^tevOaltung  ber 
©olbreferpe  roiirbe  uiet  grofjev  fein  a[o  irgenb  ein  3iniengennnn,  ben  eine  bcrartige  Qiv 
culation  meglid)ernifiie  bringen  fonnte.  'iJIuf  nlie  Adlle  luiirbe  ber  unbebeutenbe  3infen; 
gercinn  fein  Grfaf,  u'in  fiir  ha'^  grofte  3{ifico  unb  bie  grofee  'JJJiif)fa[,  ben  (Solbeinl5fungo  = 
fonbs  aufred)tsnert)altcn,  unb  fiir  bie  3nieife!()aftigfeit  unb  bie  llnfid)erl)eit,  mit  benen 
ee  nnfer  ^^apiergelb  bei  unfercm  eigenen  )l5olfe  unb  in  ber  ganjeu  aSolt  umgebeu  toiirbe" 

(5el^  c_,cniK3  porban^en. 

2)ie  9liioionbung  bicfer  ^colen  ift  nicftt  bebingt  burcfi  Wanget  an  Um(auf§nutteln 
ober  ©elbfuappbeit.  Stnx  lelUen  erftcn  5JJttt  betrug  ber  Gelbunilanf  in  bieient  Sanb  ■ 
.?"J4,33  anf  jeben  .ftopf.  Sin  v»'if)i"  i'orf)er  betrug  er  5;"J.'3,()1.  Unfeve  pro  .rtiiptr(5irculation 
ift  gegenmartig  tidt)n  al^  :^n  irgenb  einer  3eit  ieit  1SH7,  nuogenonnnen  in  1H9-2,  no  fie 
*'2t,t4  betrug,  nnr  11  Seuto  niehr  ale  augenblicflic^.  Ge  ift  (^ielb  im  Ueberfhin  ba,  mel: 
d)fO  ^u  einem  niebrigeren  ^'"-'"f'  '•'^  i«  .^uuor  geborgt  roerben  fnnn.  Sid)erlid)  loirb 
fein  ttufridjtiger  ^^JJenfd)  bebanpten  wollen,  bafj  bie'e  9fotenauegabe  roegen  einer  .V^napp= 
belt  ber  Unitaufeunttet  geboten  erfc^eine.  9lud&  bie  5ie[)auptuiig  Infjt  fit^  nidjt  begritn  = 
ben,  ba(^  biei'er  'Jtotenanegabe  bie  9hiegnbe  non  SBonbe  entgegenftebe. 

^m  nec^e]\t^<'i^,  nienn  roieber  foldie  J^eit  iiber  un6  foninuM;  'olMe  tuie  in  1803—  '.894, 
fo  n)iirbcn  biefe  JJoten  bie  SUert^euge  fein,  bereu  fid^  tjerjlofe  JDJatler  unb  (SJelbipet^fler 


13 

(K'bieuen  icurben,  uiii  (S^-ilb  aits  bcm  ®d)a8amt  ju  jiefjen  unb  iin^  }u  jnJiitgen,  ben  ^er< 
hift  biird)  etiie  '^juCauoijiibe,  bte  (55oib  bviiu^eii  luiirbe,  ju  eife^eii.  Uii£)  eine  fo(c^e 
:!t-ionboau5ija{ie  fiioot  i()r  etnjtijeo  liiaf;  tu  hev  ©ier  unb  ber  9)Ja(^t  ber  0elbiyu^tfate. 
Sas  lUujliicf  ift,  baf,  luiv  niit  ber  ©inloinnij  foldjev  3Joten  nie  fertig  loeiben,  beiin  nad) 
bcm  @eie^  niitffen  bieielben,  fobalb  fte  eiugetoft  finb,  »on  neuem  auSgegeben  merben. 
llie^v  ©reenbads  licfevn  einfact)  Jfiall  Street  grofeece  a)litte(,  ®olb  an  fic^  ^u  ^nijen  unb 
jiiMU-  »on  58oub^,  bte  in  ber  'Ji'egel  nidjt  in  bie  §dnbe  ber  isolfeniaffen  gelangen.  ©eiuiu 
tein  befferer  '^^lan  n(6  biefe  ^Jioienaiisgabe  liifet  fid^  erfinnen,  um  unfere  3fegieruna  i)0ll  = 
Itnnbig  unter  bie  SontroIIe  ber  iogeiiannten  @elbuiad}t  —  ber  ffliorgan^  unb  c.nberer 
Sunbifate  j^u  bringen,  rcelc^e  e^  uuf  eineii  3iaubjug  gegen  unfer  ©d;a^jamt  abgejet)en  tja-- 
ben  nuiijen. 

tPas  bie  Seigniorage  ift. 

^err  ^rafibent,  id^  roiH  nod^  ein  paur  SBorte  fagen,  wie  id^  iiber  bie  SRiinjprofitc 
(Seigniorage)  benfe.  Unter  beni  ©efe^uon  l^'.ui  untrben  iif)8,674,682  linden  Silberbullion 
}u  bem  i^ofienpreis  con  *l 55,981,002,  ober  pi  eineni  2)urc^)d)nitt5pret^  oon  92.44  gent^ 
bie  Unje,  getauft.  %ViV  biejen  58etrag  @il5er  finb  ©d^a^jamtSnoten  im  Setrage  Bon 
$155,931,002  ou§gegeben  luorben,  oon  lueld^en  $102,394,260  nod^  ausftefjen,  unb  biefe 
ftellen  (92,44  6ent5  bie  Unjc)  bie  t^atfcic^ltd^eu  jloften  be^  im  ganjen  auf  109,355,514 
Unsen  fid^  belaufenbeu  ©ilbers  bar.  ©ecb6nnbfed)jig  3)filIioneu  giuei^unbert  unb  Slc^t^ig 
Jaufenb  Unjen  fi"b  gepvdgt  loorben,  unb  bie  D^loten  finb  eingejogen  unb  burc^  ©ilber« 
boUaro  erfe^t  luovben. 

!J^er  einjige  ^JUinjprofit,  roeld^er  billigerroeife  ol^  ©egenftanb  fiir  bie  ©cfe^gebung 
iet.it  in  (Vrage  fommen  !ann,  ift  ber  3JUin,;(profit  uon  bem  ©ilber,  metc^e^  S^Pi^'rtSt  morben 
unt  an  bie  ©telle  jener  ?Joten  getreten  ift,  unb  bieg  iiberfteigt  nid^t  ben  SJetrag  oon 
:i-20,0(Hi,()()0. 

©olange  jene  9{oten  nusftefien,  bilbet  biefe§  ©ilber,  becor  eg  gepragt  roirb,  il^nen 
gegcniiber  eine  9lrt  uon  Sruft^Joitbg,  benn  bie  ?ioten  uniren  bafirt  nid^t  auf  bie  Quan^ 
titiit  von  ©ilber,  meldie  man  braudjt,  um  einen  ©ilberbollar  ju  madden,  fonbern  fie 
niiiren  bafirt  auf  bie  i^often  be^  gefauften  ©ilberbullions,  mit  anberen  SJBorten :  fiir  jeben 
S'ollaroiuertb  ©ilber,  ber  gefauft  mor,  rcurbe  ein  "Dollar  in  ^JJoten  an^gegebeu  —  nic^l 
ii!ol)v  unb  nictjt  roeniger  —  unt)  eo  loiirbe  fir^  fel)r  iibel  auenebmen,  loenn  mir  je^t  oor  ber 
liinjie^ung  biefer  ^JJotcn  non  1>90  auf  bie  eine  ober  bie  anberer  SBeife  bos  ©ilber  meQ- 
i,\tl)in  uioUten,  lueldjes  ibre  ^afie  ift.  2fia§  bagegen  ben  Iktrag  angebt,  ber  bereit6  ge= 
priigt  ift,  fo  ift  won  bieiem  eine  5.1liin,uj^bii^r  won"  faft  j!<!0,()(K),(j(iO  nor^anbcn  ;  biefe  ift 
nerfitgbar  unb  fbnnle  nugbar  gemadjt  merben.  3^^  bin  jebod)  ber  3lnfid)t,  bafe  ber 
ftdicrfte  SlBeg,  bieteo  ©ilber  uup'ar  jn  madden,  obne  eine  ©tijrung  in  uUfcrem  ©elbroefen 
bevDor.pirufen,  ber  ift,  barauS,  luenn  es  nod)  nic^t  gemiinjt  ift,  ©d^eibefilberniUnje  ju 
ii-^lai^en. 

ioerr  ?ltbrid).  SBerbc  id)  ben  ©enator  unterbred^en,  loenn  ic^  ir)n  auf  etroaS 
aufmorf fnm  nuube  ? 

.t)  e  r  V  9£  e  If  0  n.     3)urd)aii5  nidE)t. 

^  e  r  r  9U  b  v  i  c^.  3)Jit  ^Beug  auf  bie  $20,000,000,  «on  raeldien  ber  ©enator  fprid^t, 
mbdjte  id)  ibn  barnn  crinnern,  b;ife  biefe  in  bag  ©d)al?amt  gefloffen,  in  ©ilberbollars  ge- 
prcigt  unb  (iertificatc  bafiir  auogegeben  morben  finb. 

£)  e  r  r  3J  e  I  f  o  n.     SBenn  bem  fo  ift,  bag  bedt  bie  ©ad^e. 

6  e  V  r  31 1  b  r  i  c^.     a^oUfommen. 

£(  e  r  r  9J  e  I  f  o  n.  SlSenu  bie  Slngabe  beg  ©enatorg  auf  2Bal^rl^eit  berubt,  fo  ift  bag 
geniigenb. 

gt  e  r  r  9U  b  r  i  d&.     J)ag  ift  gar  !eine  ^^^rage. 

i»erv  (S  odf  re  1 1,     ^d^  i)abt  ben  ©enator  uon  !R^obe  ^glanb  nidit  werftanben. 

gi  e  r  r  9(1  b  r  i  d^.  ^scb  fagte,  bafe  bie  9)Mm^gebii[)r,  bie  non  bem  ©ilbertauf  unter 
bem  ®ek(3  won  I890abfdllt,  bereitg  in  ©ilberbollaro  gnnlinjt  ift,  unb  bafe  «iegca  ben 
ganjen  Sietrag  ©ilbercertificate  augfte^cn. 

Serr  Sodfrell.  2Bir  [)aben  neunjel^n  Miaioncn  in  ©ilberboUarg  gemunjt 
unb  ben  Sfeftbetmg  ni'g  ©rf)n(?amt  geftcdft. 

£)  e  r  r  21  I  b  v  i  d^.    ©euau  bag  fagte  id^. 


14 


:p  e  r  r  -Ifl  e  I  }  o  n.  ffieim  invo  \va[)v  tft,  lutb  idi  bisir.ei|"Ie  eo  uidjt,  io  ift  feiii 
i!h'ui,H'vofit  Dor[)anben,  JDeId)ev  mit  j^ui^  unO  Jiec^t  ueifiu^bar  luiire.  lev  ^^Jiiiuv^nofit 
Boii  bem  ungepvdgten  ©ilbec  mivii  ueriwanbt  unb  geiiiunu  toerben,  jo  idjiiell  luie  bev  rHeft 
ber  ilfoteii  etngeiiogeu  iDirb.  So  ftninnt  es  511  fiem  ■^ucbftateu  unb  bem  (yetft  beG  ©eieyeo 
Don  18y0.  !J)ieie  3?oten  finb  baiirt  aiif  eine  befttinmte  uor^anbene  3}2enge  von  Silbers 
buUion,  unb  an  biefer  ^a\ii  barf  vox  bee  (Stujte^ung  ber  'Jtoten  nic^t  geritttelt  roerben. 


Achtbaren  WILLIAM  LINDSAY, 
®oIb  :  ^cmofrat  Don  ^rntucft). 

©e^alten  nm  24.  Ttax  1898. 

Tiie  forage  ift,  ob  ir»ir  23onb^  uerfaufeu  iotlen,  hiu  ba§  not^ige  ®elb  jur  Seja^Iung 
ber  5tofteu  bee  iU'ieges  an3U)d)affeii,  ober  ob  luir  bie  :J[uogabe  ber  (Breenbacf^  »ennef)ren 
unb  bie  Siegierung  jraingen  follen,  Sonbe  ^u  oerfnufen,  uiu  (55?lb  in  ben  ^hinbesfc^aj  ju 
t^un,  roomit  luir  bie  ©reenbacfo  auf  bem  gleicSjeit  2Beiti)e  mit  ®i)!D  ^alten  fijnnen,  fobalb 
e^  htn  ©pefulanten  gefallt  einen  Jlngriff  auf  t)a<j  Sdja^amt  ^u  inac^en,  nac^bem  loir 
beren  ©elegen^eit,  es  ju  tf^un,  um  25  ^^rojent  exi)'6i}t  ^aben,  nermittetft  ber  33il(,  roetc^e 
©ie  jum  ©efe^e  er^eben  rooUen. 

^err  ©pooner:   2)a§  ift  ber  S'l'ct*- 

^  e  r  r  2  i  n  b  f  a  g  :  ©^  ift  fcine  JBoubfrage.  2tn  jcbem  ®nbe  ber  Sinie  ^aben 
roir  SBonbg.  6^  ift  eine  5'^age,  ob  roir  bie  im  WinoritotSberic^te  be^  5inanj  =  3lu'jfd)ui5 
fe^  empfo^lenen  Sonb^  ocrfaufen  rooUen,  ober  ob  inir  Sonbs  unter  bem  ®eie^e  non  l.s75 
oerfnufen  roollen,  unb  5Sebermann  roeiB,  baR  bie^  ber  T^ali  ift.  G'j  loirb  oielleic^t  feiiie 
2Ulate  auf  bas  ©c^a^amt  gemac^t  rcerben,  loie  infinuirt  roirb.  2lber  roann  [)aben  unr 
biefe^  plo^lic^e  'iiertrauen  in  bie  ^JJidfeigung  ber  (^iolbs ©pefulanten  unb  @cf)a5amt^:-?ln: 
greifer  gemonnen?  SBas  bat  fic^  roa[)renbber  le^ten  jioei  3«l)ren  ereignet,  um  un^  gUubeu 
JU  madt)en,  baB  raenn  biefe  Seute  burc^  ben  Grport  uon  ©olb  ®elb  nerbienen  fonnen,  fie 
nicf)t  einen  2lngriff  auf  bns  @olb  im  ©cba^amte  mit  ben  je^t  ausfte^enben  ©reenbact^ 
mac^en  roerben  unb  i^n  nic^t  noc^  erfolgreic^er  mac^en  roiirben  mit  ben  ncuen  ©reenbacf^, 
roelc^e  nac^  ben  Seftimmungen  biefer  ibill  noc^  roeiter  in  Sirculation  gebrac^t  roerben 
miifeten  ? 

9JJein  ^Jreunb  oon  XejaS  ($err  G^ilton)  gab  oor  jroei  ^f^^J^^tt'  ot^  i^icfe  '^yaqt 
erortevt  rourbe,  feine  ungualifictrte  3"fti'"'"i'"3  f"i^  ®6'i>  f*'^  gefe^IicfteS  3'*^^'"ittel. 
Snbem  cr  feine  ©inroonbe,  ober  ^unfte,  bie  feine  SiUigung  nic^t  fanben,  aufgd^lte, 
fagte  er  : 

„Gtner  berfelben  rlc^tct  ftc^  gegen  bie  nierte  ©cftion,  roeld^e  bie  ®iebcrau3gabe  ber 
eingelbften  ©reenbacf^  DorfirOi't^ibt.  ^d)  fiir  meinen  Jb^il  tanw  nic^t  glauben,  t)a^  loir 
roieber  georbnete  )^inanjDer^;i(tniffe  l^aben  roerben,  bi^  ber  befte^enbe  (Sjebraud^,  einge^ 
lofte  "Demand  Notes"  ber  3tegierung  roieber  au^jugeben,  abgefc^afft  ift;  unb  fobalb 
ein  gerec^ter  unb  anne^mbarer  ^IJlan  jur  ©rreic^ung  biefe^  ^^mdti  nor  bem  ©enat  liegt, 
erroarte  id^  bafiir  ju  ftimmen." 

SJiit  biefer  3lnfic^t  bin  tc^  in  ooHem  ®in!lange. 

lier'^unft,  ben  id)  ma:^e,  ift  foTgenber  :  ©ir  fonnen  gegenroartig  bie  freie  unb  un« 
befc^rdnfte  ©itberpragung  nic^t  einfUtjren.  SBir  fonnen  unb  bitrfen  nicbt  oorfc^lagen, 
©ilberbollarS  in  ben  3teferDe«'5onb^  »u  t^un,  um  ®reenbacf§  bamit  einjulofen.  ''Jinn. 
alfo,  roenn  eS  fc^Iec^te  ^^olitif  ift,  nac^bem  roir  bas5  3tec^t  §a6en  91oten,  bie  gcfe^Iicbe'3 
3a^ImitteI  ftnb,  mit  foroo^I  ®olb  reie  ©ilber  einjulofen,  fie  roieber  ouJjugeben,  fo  frage 
ic^  ob  ti  nid^t  fc^tec^te  ?Politif  tfl,  fie  roieber  augjugeben  unb  fie  ali  gorberungen  an  baS 
©c^a^amt  auSfte^en  ju  laffen,  toenn  rolt  boc$  nut  eine  3lrt  con  3Jliinje  ^aben,  roomit  fie 
cingeloft  roerben  fijnnen? 


15 

^  e  r  r  S  a  c  o  n  :  ^c^  ftimme  bem  S'lntor  ooafommeit  ^u.  JBenn  roir  tauter  ge. 
prdgteg  ®elb  f)ahin  fbimten,  fo  iDiirbe  tif)  iiatiuitc^  alleiii  ^^apieigelbe  in'ponireu  •  ba 
abec  bte  ^:8.xrriere  erric^tet  ift  itnb  Sie  jageii,  luir  folfeii  feiu  gepcdgte^  (^eto  ^aben,  fon« 
been  baS  baS  mcifte  (Soui-aiit  ^apiec  feiu  foU,  baim  ift  bie  befte  5«ote  bie  ber  Jlegierung. 

(Breenbacfs,  urn  (5olc)  bamit  aus  bem  Sd^a^e  5iet^en  511  fonnen. 

.^  e  r  r  S  i  n  b  f  e  ^  :  giuu,  faffeu  @ie  un€  lefieii,  roie  e§  mtt  biefer  befteii  ^)?ote  fteEjt, 
33or  siosi  3af)rn  war  biefe  ©arf)e  unter  Si^cuifion.     ^d)  gtaube  meiii  ^reunb  Ijier  (tterc 
^'11  I  e  11)    roar    bafiir    Berautrooctlic^.        Gin  f)erPocrageube6    ^JJitglieb  be^    ^^-inans^ 
^Jlii^ic^iiffe^,  ber  Senator  won  3lrfanla^   (:perr  3  o  n  e  e)  [)atte  0elegeu^eit  fic^   iiber 
bieie  5Urt  von  (SJelb   ttu^juipredjen.     ^c^  glaube,   mein  g-reunb   von   i«ebragfa   ($err 
HI  He  n)  ^atte  fic^  s«  »erid)iebenen  5Be6auptungen  uerftiegen,  ba&  (Sreenbacf^  ibeale^ 
®elb  feien  unb  ba'o  befte,  ba^  luir  je  ge^abt. 
$  e  r  r  21  n  e  n  :  3"^  i»ill  es  je^t  (agen. 
|)err  Sinbfe^:  2)er  Senator  won  3lrfanfa3  fagte  bairala  : 
„2)ie  2Ba^r^eit  ift,  bag  bie  eiI6er=  (Certificate  ^eute  ^ienft  alg  ^apiergelb  fiir  ba§ 
Sanb  t^un.    2)ie  ©reenbacf^  t[}un  i^n  nid^t.    ^in  (5Jegeiit[)eil,  bte  roerben  »on  ben 
Sanfen  juriidEgefialtfn,  uni  mit  ifinen  ®otb  au^  bem  ^i3unDeoid)atje  sn  bolen,  fobalb  fie 
cS  roollen,  roenn  iuimer  fie  il^re  ©olbworrattje  uermefjren  roollen.     aBiil^renb  bet  leUten 
fedjiiig  lage,"  —  icf)  glaube,  e3  roar  ini  55a[)re  1895  —  ,,rote*  ii^  gera^e  gefagt  ^abe, 
finb  me^r  a(§  $50,000,000  @oIb  in  biefer  SBetfe  au6  bem  Sd)at5e  gejogeii  roorben  unb 
Don  biefen  $50,0)0,000  finb  mir  $15,000,000  nadE)  bem  2lu^(anbe  gefcbtcft  roorben.   Sic 
anbern  $35,000,000  rourben  ge,^ogen,  um  beifeite  getegt,  in  SBanfen  gefjalten  ju  roerben 
unb  bie«  roirb  anbauern,  fotange  roir  bie^  bequeme  !Dlittel,  ba^  ©c^a^amt  ju  ent« 
blo&en,  in  i^ren  ,'oanben  (affen."  — 
5hin,  roir  l^aben  bag  Wittel  bi3  l^eute  in  i^ren   <panben  gelaffen  unb  je^t  ift  ber 
SSorf^Iag  gemadjt,  bie  yjJad^t  nod^  um  25  '^roj.  grower  ju  mac{)en,  al^  fie  jur  3eit  roar 
atS  biefe  Srflarung  abgegcben  rourbe  — 

,,©obaIb  fie  einen  ^onbuerfauf  erjroingen  rooHen,  fonnen  fie  e§  tl^un,  inbem  fie 

(SJolb  au3  bem  ©dia^e  jiefien,  bi§  ber  'JJiiifibent  ben  ©olbbeftanb  fitr  gefrt^rbro()enb 

gefc^rodc^t  l^dtt,  unb  nad&bem  bie  S3onbg  cerfauft  finb,  faun  bao  bafitr  be,^aF)lte  ®o(o 

g[eid^  roieber  au^  bem  Sc^atjamte  gejogen  unb  in  ben  i^aufen  aufget)d»ft  roerben,  unb 

nad)bem  bteS  ein  Du^enb  nial  gefd^e^en,  finb  roir  nicjjt  beffer  ab  ;  rvinn  roir  $100,0('0,s 

000,  $200,000,000,  ober$30(  1,000,000  Sonb^  au^gegeben  f)aben,  finb  roir  nid^t  beffer 

b'ran,  al^  ba  roir  anfingen." 

Da«  War  bte  bemofratifcbe  ®reenba(f=3bee  tm  3rtnuar  189r>,  brt§  fie  t'l^rcm  ^wtit  ni^t 

btenen,  bap  fie  son  ben  Sanfen  unb  ©olb  -  ©pffulnnten  ;(uriicfgebalteit  wurten,  unb  fca§  bit 

Sanfen  unb  (Spefulanttn  ben  'Sunbtgfc^ae  mtt  ibnen  ou^taubten,  rocnn  tmmtr  fie  5>rofit  babet 

macbfn  unb  ba3  ©c^a^amt  jmingen  fonnten,  ^onti  unter  bem  (SJefepe  »om  1875  ju  serfaufen. 

■J^tcfe  33iU  btabfi(ttii!t  Itefcn  Seuttn  |150,00(»,000  Demanb-^totrn  mebr  ju  geben  al«  fie  in 

1895  batten  ;  fte  fle^t  Jur  dJolbmaljrunc;,   roo^u  biefe  iJlbmtniihation  ocrpflic^tet  iit,    ju  ftc^cn  ; 

fte  Ia§t  baa  (Sefe^  con  1875  in  5lraft,  fo  ba§  bie  au^i^e^eicbneten  ^erren,  xotl^t  (ijelb  au3  Sin- 

griffen  auf  ben  (©c^a^  mac^en,  biefen  25  ^Jrojent  bcffcr  unb  leii^ter  ancireifen  fijnncn,  alg  jut 

3eit  too  ber  Senator  »on  9lr(anfn«  ©acjjen  aufbecfte  bie  bamald  fein  Wenfctj  bejttttt,  unb 

b'eren  Srtflenj  fein  Wenfc^  jept  bejlretten  fann. 

9lber  wtr  toiffen  fo  ptel:  ffienn  ©it  biefe  (S3rcenbacf3  au^geben,  tuerben  fie  mit  ®olb  etn- 
geliiji  njerben,  unb  ®ie  tciffen,  ba§  tvenn  fie  eingelijft  (tub,  fie  wieber  au^flegeben  toerben,  unt 
bann  roieber  mit  ®oIb  einflelijil  roerben  mii§ten  ;  unb  ©te  roiffen,  ba§  wenn  ti  not^ig  ifi,  ®Ii 
bafur  anjiufcbatfen,  tcieber  Sonb^  unttt  bem  Oefe^e  »on  1875  otrfauft  Wfrben  miiffen,  umo^e 
)U  befoininni. 


(No.  IS) 

PROPOSED 

INVESTIGATION 

As  to  the  Organization  and  Equipment 

Of  All  Brandies  of  the  Army 

Mr.  Simpson,  of  Kansas,  Objects 


SOLDIERS'   RATIONS 


BY 

HON.  JOHN  ALLEN,  OF  MISSISSIPPI 


X 


"Slander  your  Government  if  you  Must" 


Soppig  of  noaiteiiitiistti  am  Coiniiilssanj  stores  Biiigji 
THE  SANTIAGO  CAMPAIGN 

WAS     ABUrVDAINT 


From   the  Congressional   Record   and  Official  Reports  of  the 
War   Department 


zi 
to  Mesiigate  mi  Branclies  of  tQe  flri. 


[From  the  Congressional  Record,  July  8,  189S,  p.  7646.] 

Mr.  HULL   (Republican).     Mr.   Speaker,  I  want  to  submit  the  following 
resolution  and  ask  its  immediate  consideration. 
The  Clerk  read  as  follows: 

Resolved,  That  the  Committee  on  Military  Affairs  have  power  to  sit 
during  the  adjournment  of  Congress,  and  make  such  investigation  as  to 
the  organization  and  equipment  of  all  branches  of  the  Army  as  it  may 
deem  advisable,  and  report  to  the  next  session  of  Congress. 


Mr.  EICHARDSOX.  Is  this  resolution  recommended  by  the  Committee 
on  Military  Affairs? 

Mr.  HULL.  Yes,  only  by  conference  with  the  two  Democratic  members 
and  several  Republican  members.  I  will  say  to  the  gentleman  that  this 
resolution  does  not  provide  for  the  payment  of  the  expenses  of  the  com- 
mittee, and  they  will  have  to  pay  their  own  expenses  where  they  travel, 
I  did  not  want  it,  for  myself  at  least,  to  be  thought  that  we  wanted  to  fix 
up  a  job,  but  I  do  believe  that  the  House  should  pass  a  resolution  of  this 
kind,  so  that  the  members  of  the  committee,  or  a  part  of  the  committee, 
should  be  able  to  go  to  Fort  Alger,  Tampa,  and  Chattanooga  with  power 
to  make  a  proper  investigation  of  the  different  camps. 

HON.   JERRY  SIMPSON   (POPULIST,   OP  KANSAS)   OBJECTS. 

Mr.  SIMFSOIT.  Mr.  Speaker,  I  want  to  say  to  the  gentleman  from 
Iowa  that  we  have  within  the  last  month  passed  bill  after  bill  providing 
for  a  thorough  organization  of  the  Army,  inspector-generals  without 
number,  and  we  have  all  these  officers 'to  look  after  the  matters  in  con- 
nection with  the  Army.  I  do  not  see  any  good  to  come  out  of  a  committee 
of  civilians  to  investigate  it,  and  I  want  the  party  in  power  that  ap- 
pointed the  men  to  assume  the  responsibility,  and  therefore  I  object  to 
the  consideration  of  this  bill. 

(2) 


HON.  CHAMP  CLARK  (DEM.,  OF  MISSOURI)  INCLUDES  POPS  AND 
FREE  SILVERITES  IN  THE  DEMOCRATIC  PARTY. 

Mr.  CLARK  (of  Missouri).  My  Republican  friends,  we  took  you  by  the 
BcrufE  of  the  neck  and  dragged  you  into  it,  and  that  will  be  the  verdict  of 
history. — Record,  p.  5017. 

Now,  Mr.  Speaker,  I  am  about  through  with  this  business.  I  said  if  either 
party  had  a  right  to  claim  this  war  as  its  own,  it  is  the  Democratic  party. 
I  glory  in  it,  and  in  that  I  includ*  the  Pops  and  Free  Silverites,  because 
on  this  war  question  we  are  all  one  substantially.  (Laughter  on  the  Re- 
publican side.) — Reeord,  p.  5018. 


THE  SOLDIERS'  RATION 

BY   HON.   JOHN   ALLEN,   DEMOCRAT,    FROM  MISSISSIPPI. 

[From  the  Congressional  Record,  I'lige  7278.] 

Being  an  old  and  experienced  soldier  and  having  had  much  experience 
with  rations  and  tJae  want  of  them  [laughter],  I  might  be  permitted  to 
express  some  opinion  on  this  subject.  I  want  to  say  that  my  experience 
was  with  the  rations  issued  to  an  army  that,  judged  by  its  achievements, 
was  a.s  good  as  the  world  ever  saw.  And  when  I  look  over  the  bill  of  fare 
now  issued  as  the  rations  to  our  seldiers,  I  can  but  think  of  what  a  ban- 
queting feast  it  would  have  been  to  the  soldiers  who  naade  such  a  reputa- 
tion for  soldierly  qualities  on  both  sides  in  this  nation  thirty-five  years 
ago.  Just  listen  to  this  bill  of  fare.  This  is  the  daily  ration  now  re- 
quired by  law  to  b«  furnished  the  soldiers: 


THE   OFFICIAL  ARMY  RATION 

A  ration  is  the  allowance  for  subsistence  of  one  person  for  one  day,  and 
consists  of  the  meat,  the  bread,  the  vegetable,  the  coffee  and  sugar,  the  sea- 
soniag,  and  the  soap  and  candle  components.  (Paragraph  1251,  Army  Regu- 
lations, 1895.)     See  also  paragraph  1258,  ibid. 

The  kinds  and  qtiantities  of  articles  oomx)osing  the  ration  for  trooj>8 
where  cooking  is  practicable,  and  the  quantities  computed  for  100  rations, 
are  as  follows  (Paragraph  1253,  ibid.): 


Quantities  per 
ration. 

Quantities  per  100 
;       rations. 

Articles. 

§ 
a 

3 

o 

i 

4 

a 

1 

a 

3 

O 

"5 

Meat  oomponenls. 
Fresh  beef 

20 

20 
12 
12 
22 
H 
1» 
18 

18 
18 
16 
20 

a 

3 

16 
16 

2| 

rx 

12S 
76 
75 

1874 
87 

112 

112 

112 
112 
100 
125 

4 

IS 

15 

10 

10 
100 
100 

too 

10 

8 

2 
16 

.....^.. 

Or  fresh  mutton,  when  the  cost  does  not  exceed  that  of 
beef. »._ 

Orpork_ „ „ 

Orsaltbeef.^ ™ ,. 

8 
8 
8 
8 

8 
8 

Orpickted  fish 

Or  fresh  fish ^,. 

Bread  eomponmts. 

Baking  powder  for  troops  in  th«  field,  when  necessary  to 

Vegetable  otmponenti. 

Or  pease ^ ^ 

Or  potatoes,  12|  ounces,  and  onions,  SJ  ounces- 

Or  potatoes,  llj  ounces,  and  canned  tomatoes,  4|  ounces; 
they  can  be  obtained  in  the  vicinity  of  the  post  or 

Coffee  and  rugar  ccmponenit. 

Qb:  roasted  coffee 

— 

1 

f 

t 

SeoMning  eomponenis. 

T 

1 

Salt _ 

i" 

8 

Soap  and  candle  eompongnte. 
1 
goap .-. ; _.. 

4 
1 

Candles  (when  illnminating   oil  is  not  ftimlshed   by  the 

Why,  Mr.  Speaker,  when  I  was  a  Boldier,  this  ration  cooked,  as  we  knerr 
how  to  cook,  would  have  furnished  a  fesst  more  tempting  than  any  thut 
eouid  be  set  before  me  now  by  Delmonico.  There  may  be  some  complaint 
with  some  of  the  velimteers  who  have  never  been  accustomed  to  army 
life,  but  I  uaiderstand  that  the  regular  soldiers  are  well  satisfied  with 
their  rations,  and  it  is  admitted  that  the  (Commissary  Department  is  op- 
pesed  to  this  change.  When  the  volunteers  become  inured  to  camp  life,  I 
think  they  wHl  be  well  satisfied  too. 


I  am  willing  to  do  everything  necessary  for  the  good  and  comfort  of  our 
soldiers.  But  if  you  want  good  soldiers,  you  do  not  want  to  coddle  them 
too  much.  You  hear  a  great  deal  of  talk  about  "hard  taek"  and  "sow  belly," 
but  I  have  not  been  real  hungry  since  the  war  that  I  did  not  crave  hard- 
tack and  bacon. 

Why,  Mr.  Speaker,  a  man  with  a  good  appetite  who  is  really  hungry,  who 
can  get  some  hard-tack  or  baker's  bread  and  a  piece  of  bacon,  put  a  stick 
through  it,  hold  it  over  the  fire  and  broil  it,  and  drip  the  grease  on  his 
bread  and  eat  it  has  what  is  to  me  a  very  good  repast,  if  he  can  get  enough 
of  it,  Wh«n  I  get  hungry,  as  I  have  many  a  time,  I  think  much  more  about 
broiled  or  fried  bacon  and  bread  than  I  do  about  terrapin  and  champagne 
or  lobster  a  la  Newberger  or  punch  a  la  llomani.     [Laughter  and  applause.] 

Why,  sir,  last  year  I  bought  a  few  boxes  of  hard-tack  and  took  them  down 
to  some  of  my  old  Confederate  friends  just  as  a  reminder  of  old  times. 
[Laughter.]  I  do  not  want  our  soldiers  confined  to  hard-tack  and  bacon, 
but  you  see  by  this  bill  of  fare  they  are  not  confined  to  it.  You  do  not 
Avant  to  overdo  this  thing  and  get  your  ration  too  big.  Our  Army  is  not 
going  OBt  just  for  the  purpose  of  eating.  [Laughter  and  applause.]  They 
have  other  business  in  hand  to  which  they  will  properly  attend  if  3'ou  will 
give  them  a  reasonable  amount  of  food  and  a  chance  to  fight. 

Look  at  tb«  Regular  Army,  who  hare  been  furnished  with,  the  rations 
now  pre«erib«d  by  law.  You  will  not  see  a  finer,  healthier,  or  hardier 
set  of  meK  anywhere.  They  have  plenty  of  such  things  see  experience 
has  demonstrated  was  best  for  them.  Let  the  Government  see  that  the 
contractors  do  not  swindle  them  in  the  quality  of  the  food  furnished.  I  do 
not  care  much  about  this  proposition  to  furnish  cheese,  but  I  doubt  very 
much  if  it  is  made  as  much  in  the  interest  of  the  soldiers  as  it  is  in  the 
interest  of  the  people  who  have  cheese  for  sale. 

Mr.  Speaker,  so  far  as  I  am  indiv:idual]y  concerned  and  those  who  co- 
o]^erate  with  me  in  this  House,  we  want  to  give  to  the  Administration  every 
possible  facility  for  the  proper  conduct  of  this  war.  I  do  not  believe  there 
•n  ill  be  found  on  either  side  of  this  House  anj'one  voting  to  obstruct  a  suc- 
cessful prosecution  of  this  war;   it  is  not  a  partisan  war. 

I  do  not  believe  if  we  had  a  Democratic  Administration  that  you  people 
would  want,  for  partisan  jjurposes,  to  hamper  or  impede  that  Administra- 
tion in  conducting  a  war  against  a  foreign  country,  and  I  for  one  protest 
against  the  efforts  which  have  been  or  may  hereafter  be  made  to  make 
political  capital  in  favor  of  or  against  any  political  party,  especially  when 
there  is  no  more  ground  for  it  than  exists  up  to  this  time. — Record,  p.  7278. 


DEMOCRATS   REBUKED— PATRIOTISM   RISES   ABOVE   PARTY. 

Mr.  CUMMINGS  (Democrat  from  New  York).  Mr.  Speaker,  the  gentle- 
man from  Washington  (Mr.  Lewis)  for  some  inscrutable  reason  has  seen 
fit  to  embalm  me  in  the  honey  of  his  intellectuality.  .  [Laughter.]  He  asks 
above  which  party  does  patriotism  rise  in  the  House.    It  rises,  Mr.  Speaker, 


6 

above  both  parties.  As  a  war  Democrat,  I  enlisted  in  the  war  for  the  Union, 
not  because  it  was  bemocratic  policy,  not  because  it  was  Republican  policy, 
but  because  the  country  was  in  danger,  and  I  was  due.     [Great  applause.] 

The  gentleman  voted,  without  talking,  for  the  $50,000,000  appropria- 
tion. Why  did  he  not  think  of  "contractors"  then?  Was  not  the  time  to 
speak  beforehand,  and  not  afterwards?  Why  is  it  that  he  is  already 
accusing  men  in  high  standing  of  corruption  when  the  war  has  hardly 
begun? 

Mr.  LEWIS  of  Washington.    But  they  have.     [Laughter  and  api)]ause.] 
Mr.  CUMTMIXGS.     Make  your  statements  clear,  produce  your  proof,  and 
then  slander  your  Governnient  if  you  must.     Do  not  do  it  under  suspicion. 
[Great  applause.] 

Now,  Mr.  Speaker,  I  did  believe,  when  I  votetl  for  the  bill  proposing  to 
raise  revenue  to  carry  on  this  war,  and  the  Democratic  side  of  the  House 
almost  unanimously  voted  for  war,  that  I  was  doing  fully  as  patriotic  a 
thing  as  the  gentleman  did  when  he  voted  for  the  $50,000,060,  to  be  placed 
at  the  disposal  of  the  President  without  conditions.  I  believed  that  if  a 
Democratic  Administration  was  forced  to  sell  $300,000,000  in  bonds  to  run 
the  Government  in  time  of  peace,  that  a  Republican  Administration  might 
be  allowed  to  sell  bonds  enough  to  run  the  Government  in  time  of  war. 
[Great  applause  on  the  Republican  side.] — Record,  p.  5014. 


SUPPLY   OP    QUARTERMASTER   AND   COMMISSARY    STORES   DITR- 
INQ  THE  CAMPAIGN  WAS  ABUNDANT. 

[From  tVie  Official  Iteport  of  Gener»l  Shai'ter  on  the  Santiago  Campaign  to  the  War  Department.] 
^ly  efforts  to  unload  transportation  and  subsistence  stores,  so  that  we 
might  have  several  daj's  rations  on  shore,  were  continued  during  the  re- 
nuiinder  of  tie  month.  In  this  work  I  was  ably  seconded  by  Lieut.  Col. 
Charles  F.  Humphrey,  deputy  quartermaster-general,  U.  S.  A.,  chief  quar- 
termaster, and  Col.  John  F.  Weston,  assistant  cemmissary-general  of  sul> ' 
sistence,  chief  commissary;  but  notwithstanding  the  utmost  efforts  it  was 
difHcult  to  land  supplies  in  excess  of  those  required  daily  to  feed  the  men 
and  animals,  and  the  loss  of  the  scow,  mentioned  as  having  broken  away 
during  the  voj'age,  as  well  as  the  loss  at  sea  of  lighters  sent  hy  Quarter- 
master's Department,  was  greatly  felt. 

Before  closing  my  report  I  wish  to  dwell  upon  the  natural  obstacles  I 
had  to  encounter  and  which  no  foresight  could  have  overcome  or  obviated. 
The  rqcky  and  precipitous  coast  afforded  no  sheltered  landing  places,  the 
roads  were  mere  bridle  paths,  the  effect  of  the  tropical  sun  and  rains  u]X)n 
unacclimated  troops  was  deadly,  and  a  dread  of  strange  and  unknown  dis- 
eases had  its  effect  on  the  army. 

At  Daiquiri  the  landing  of  the  troops  and  stores  was  made  at  a  small 
wooden  wharf  which  the  Spaniards  tried  to  burn,  but  unsuccessfulh',  and 
ihe  animals  were  pushed  into  the  water  and  guided  to  a  sandy  beach  about 
•.JOO  Aards  in  extent.  At  Siboney  the  landing  was  made  on  tke  belich  and 
at  a  small  wharf  erected  by  the  engineers. 

I  had  neither  the  time  nor  the  men  to  spare  to  oonstruct  permanent 
wharves. 


In  spite  of  the  fact  that  I  had  nearly  1,000  men  continuously  at  work  on 
the  roads,  they  were  at  times  impassable  for  wagons. 

The  San  Juan  and  Ag-uadores  rivers  would  often  suddenly  rise  so  as  to 
prevent  the  passag-e  of  wagons,  and  then  the  eight  pack  trains  with  the 
command  had  to  be  dei)ended  upon  for  the  victualing  of  my  army,  as  well 
as  the  20,000  refugees,  who  could  not  in  the  interests  of  humanity  be  left 
to  stai*ve  while  we  had  rations. 

Often  for  daj'^s  nothing  could  be  moved  except  on  pack  trains. 

After  the  great  phj'sical  strain  and  exposure  of  July  1  and  2,  the  malarial 
and  other  fevers  began  to  rapidly  advance  throughout  the  command,  and 
on  July  4  the  yellow  fever  appeared  at  Siboney.  Though  efPorts  were  made 
to  keep  this  fact  from  the  army  it  soon  became  known. 

The  supply  of  quartermaster  and  commissary  stores  during  the  cam- 
paign was  abundant,  and  notwithstanding  the  difficulties  in  landing  and 
transporting  the  rations,  the  troops  on  the  firing  line  were  at  all  times 
sunplied  with  its  coarser  components,  namely,  of  bread,  meat,  sugar,  and 
tcfiee. 

There  was  no  lack  of  transportation,  for  at  no  time  up  to  the  surrender 
could  all  the  wagons  I  had  be  used. 

In  reference  to  the  sick  and  wounded.  I  have  to  say  that  they  received 
every  attention  that  it  was  possible  to  give  them.  The  medical  officers 
without  exception  worked  night  and  day  to  alleviate  the  suffering,  which 
was  no  greater  than  invariably  accompanies  a  campaign.  It  would  have 
been  better  if  we  had  more  ambulances,  but  as  many  were  taken  as  was 
thought  necessary,  judging  from  previous  campaigns. 

RECOMMENDATIONS   FOB,   PROMOTION   OF    SURGEONS   AND   COM- 
MISSARY OFFICERS. 

The  discipline  of  the  command  was  superb,  and  I  wish  to  invite  attention 
to  the  fact  that  not  an  officer  was  brought  to  trial  by  court-martial,  and, 
as  far  as  I  know,  no  enlisted  men.  This  speaks  volumes  for  an  army  of  this 
size  and  in  a  campaign  of  such  duration. 

In  conclusion,  1  desire  to  express  to  the  members  of  my  staff  my  thanks 
for  their  efficient  performance  of  all  the  duties  required  of  them,  and  the 
good  judgment  and  bravery  disjilayed  on  all  occasions  when  demanded. 

I  submit  the  following  recommendations  for  promotion,  which  I  etirnestly 
desire  to  see  made.  It  is  a  very  little  reward  to  give  them  for  their  devo- 
tion and  fearless  exposure  of  their  lives  in  their  country's  cause: 

B.  F.  Pope,  lieutenant-colonel  and  surgeon.  United  States  Volunteers,  to 
be  brevett^d  colonel  for  faithful  and  meritorious  service  during  the  cam- 
paign. 

John  F.  Weston,  colonel  and  assistant  commissary-general  of  subsistence, 
chief  commissary,  to  be  brevetted  brigadier-general  for  meritorious  service 
throughout  the  campaign. 

C.  G.  Starr,  major  and  inspector-general.  United  States  Volunteers,  to  be 
brevetted  lieutenant-colonel  for  faithful  and  meritorious  conduct  throughout 
the  campaign. 


Leon  Roiidiez,  major  and  quartermaster,  United  States  Volunteers,  to  be 
brevetted  lieutenant-colonel  for  faithful  and  meritorious  conduct  through- 
out the  campaig-n. 

n.  J.  Gallagher,  major  and  commissary  of  subsistence.  United  States  Vol- 
unteers, to  be  brevetted  lieutenant-colonel  for  faithful  and  meritorious  ser- 
vice throughout  the  campaign. 

Captain  Brice,  commissary  of  subsistence.  United  States  Volunteers,  to 
be  brevetted  major  for  faithful  and  meritorious  service  throughout  the  cam- 
paign. 

Captain  Johnson,  assistant  quartermaster,  United  States  Volunteers,  to 
be  brevetted  major  for  faithful  and  meritorious  service  throughout  the  cam- 
paign 

****** 

The  following  general  order  indicates  the  manner  in  which  the  -<.roops 
left  the  transports  and  the  amount  of  supplies  carried  immediatel3'  with 
them: 

General  Orders,  Headquarters  Fifth  Army  Corps, 

No.  18.  .  Ox  Board  S.  S.  Segura>'ca, 

At  Sea,  June  20,  1S98. 
[Extract.] 
2.  All  troojis  will  carry  on  the  person  the  blanket  roll  (with  shelter  tent 
and  poncho),  three  days'  field  rations  (with  coffee,  ground),  canteens  filled, 
and  100  rounds  of  ammunition  per  man.  Additional  ammunition,  already 
issued  to  the  troops,  tentage,  baggage,  and  company  cooking  utensils  will 
be  left  under  charge  of  the  regimental  quartermaster,  with  one  noncom- 
missioned officer  and  two  privates  from  each  company. 

****** 
[From  the '>fflcial  Rep'^rt  ot  Bripirtier  General  H.  W.  Lawfon.] 

To  Surg.  H.  S.  Kilbourne,  chief  surgeon,  is  due  the  thanks  not  only  of 

myself,  but  of  the  whole  division,  fqr  faithful  and  unremitting  attention 

to  the  wounded  on  the  field  and  under  fire. 

****** 

[From  I  he  Official  Report  of  Brigadier  General  J.  Ford  Kent.] 

The  officers  enumerated  should  at  least  be  brevetted  for  gallantry  under 

fire.    I  also  personally  noticed  the  conduct  of  First  Lieut.  F.  J.  Kirkpatrick, 

assistant  surgeon.   United   States  Army,   on  duty   with   the  Twent3-fourth 

Infantry,  giving  most  efficient  aid  to  the  wounded  under  fire. 

****** 
[From  the  Official  Report  of  Major  General  Joseph   Wheeler.] 
Major  West,   my   quartermaster,   deserves   special   commendation   for   his 
energy  and  good  conduct  during  the  campaign,  and  Maj.  Valery  Harvard 
and  Mr,  Leonard  Wilson  have  also  done  their  full  duty. 

*  »  »  *  »       ■     « 

[From  the  Official  Report  of  Brigadier    General    J.    C.    Bates.] 
I  •wish  also  to  add  that  Major  Ives,  my  chief  surgeon,  was  an  the  firing 
line  and  did  efficient  service  during  the  progress  of  the  fight  and  behaved 
in  most  gallant  manner. 

****** 
[From  the  Official  Report  of  Brigadier  General  H.  W.  lyawton.] 
During  the  action  T  was  accompanied  most  of  the  time  by  Maj.  Gen.  J.  C. 
Breckinridge,  Inspector-General,  United  States  Army,  as  a  spectator,  and 
had  the  advantage  of  his  valuable  suggestions  and  advice  during  the  day, 
for  which  I  desire  to  express  my  sincere  appreciation.  His  horse  was  shot 
under  him  on  the  advance  upon  Santiago,  the  morning  of  the  3d  instant. 


THE 


Conduct  of  the  War 


THE  TRUE  STORY  OF  PREPARATION  FOR  THE 

CONFLICT,  OF  DIFFICULTIES  OVERCOME, 

AND    OF    MAGNIFICENT    RESULTS, 

PLAINLY  AND   IMPARTIALLY 

TOLD 


How  the  United  States  in  One  Hundred  Days  Organized, 
Armed  and  Equipped  and  Provided  Transportation  for  an 
Army  of  over  a  Quarter  of  a  Million  of  Men,  Conducted 
Campaigns  Separated  by  10,000  Miles  of  Land  and  Water, 
Humiliated  and  Destroyed  the  Enemy  Wherever  Met,  With- 
out   One    Single    Reverse. 


PROM  THE 

NEW  YORK  MAIL  AND  EXPRESS 

October  11,  1898 


The 

Conduct  of  the  Wan 


I  The  Mail  and  Express  BrREAU, 

Washington.  October  11. 

"I  feel  that  the  American  people  have  cmnmitted  these  boys  into  my 
hands,  and  if  anybody  has  wronged  them,  I  want  to  find  it  out. 

"1  do  not  believe  thai  any  army  has  been  watched  over  more  anxiously 
and  continuously  than  1  have  watched  over  this  army,  for  I  sjient  seventeen 
hours  a  day  in  my  office  looking-  after  it." 

These  were  the  words  President  McKinley  used  when  he  asked  several 
members  of  the  Commission,  now  investigating  the  war,  to  undertake  that 
work. 

AN  AUTHORITATIVE  STATEMENT. 

It  was  with  the  same  idea  to  show  the  countr}-  that  the  War  Department 
used  every  effort  in  its  power  before  and  during  the  war  to  guard  and 
care  for  the  army  that  President  McKinley  granted  nie  permission  to 
prepare  for  The  Mail  and  Express  this  article.  It  has  been  prepared  with 
his  knowledge  and  consent,  and  all  statements  made  have  been  verified 
by  official  recoi'ds. 

While  the  President's  words  quoted  above  express  his  feelings  and  his 
desires  clearly  and  concisely,  the  statement  Avhich  follows  gives  authori- 
tatively the  true  position  and  condition  of  the  War  Dei^artment  during  the 
last  six  months. 

PRESIDENT'S  WISDOM  SHOWN. 

Already  the  wisdom  of  the  President  -in  ordering  an  investigation  of  the 
charges  made  against  the  War  Department  has  beeen  shown.  The  Investi- 
gating Committee  has  been  in  scKsion  but  a  short  time  and  but  a  few 
witnesses  have  been  examined,  but  the  testimony  of  officers  of  high  ranlc 
has  shown  how  utterly  unjust  and  unfounded  have  been  the  charges  and 
criticisms  of  the  majority  of  the  critics.  The  testimony  has  shown  that 
where  abuses  or  neglect  were  pointed  out  or  discovered,  every  effort  was 
made  to  correct  them. 

THE  OTHER  SIDE  OF  THE  QUESTION. 

For  the  fii'st  time  the  public  has  had  a  glimpse  of  the  other  side  of  the 
question.  For  weeks  the  maligners  of  the  Administration  and  the  War 
Department  have  been  making  reckless  charges  and  complaints,  and  the 
country  has  been  stirred  up  and  inflamed  by  sensational  reports.  There 
has  been  no  denial  of  sickness,  death  or  discomfort  among  our  troops. 
This  could  not  have  been  prevented.  There  have  been  mistakes  made,  but 
the  records  of  the  Department  show  that  everything  possible  was  done 
beforehand  to  prevent  these. 


But  this  has  been  war  and  not  a  summer  outing-,  and  looking-  over  the 
results  and  the  victories,  the  eountrj-  cannot  but  be  congratuhitcd  on 
the  remarkably  low  death  rate;  its  great  achievement  in  raising  an  arniv 
of  over  275,000  officers  and  men  in  less  than  fifty  days,  and  bringing  to 
a  successful  conclusion  a  war  with  a  foreign  nation  "within  three  and  a 
half  months. 

DEPARTMENT   KEPT   STEADILY   AT   WORK. 

During  the  storm  of  abuse  which  blew  steadily  over  the  country,  and 
was  especially  directed  against  the  War  Department,  that  branch  of  the 
tiovernment.  of  necessity,  was  obliged  to  remain  silent.  While  politicians 
and  ncwspajRM-s  Avcre  spreading  broadcast  %seiisatioiKil  and,  for  the  most 
jiart,  unfounded  reports  in  regard  to  our  soldiers  and  their  camps,  the  Presi- 
dent and  the  othciais  of  the  War  Department  kept  steadil.y  at  work,  remedy- 
ing faults,  correcting  abuses  and  iioiding  the  tight  rein  of  organization 
over  the  troops  which  were  threatened  with  demoralization  by  the  sen- 
sational and  scandalous  abuse.  .  It  was  at  this  time  that  the  President 
decided  that  if  the  soldiers  who  had  been  committed  to  his  care  had 
been  wronged,  he  Avould  find  it  out,  as  it  was  due  to  the  public  and  the 
country  to  know  the  triith,  and  he  would  give  it  to  them.  The  only  way 
to  do  this  was  to  appoint  an  investigating  committee,  composed  of  men 
beyond  reprcjach,  and  who  would  get  at  the  truth.  Every  one  knows  now 
the  history  of  the  appointment  of  the  War  Commission,  and  its  work  so 
far  as  it  has  gone. 

OVERCOMING  LEGAL   OBSTACLES. 

While  the  public  is  hearing  from  the  officers  of  high  rank  exactly  what 
was  done  for  the  soldiers  and  their  comfort,  nothing  has  been  given  to 
the  country  in  regard  to  the  work  of  the  Administration,  especiall,y  the 
War  De|)artment,  in  preparation  for  the  war  or  the  legal  obstacles  which 
lnim]iered  these  preparations.  The  Mail  and  I'^xpress  is  enabled  to-day 
to  j)resent  for  the  first  time  a  clear  and  authentic  statement  of  the  condi- 
lions  which  confronted  the  War  Department  when  war  was  declared; 
what  Was  done  to  overcome  these  obstacles  of  law  and  the  willful  neglect 
of  past  Congresses;  how  the  great  army  was  raised,  equipped  and  put  in 
the  field;  how  the  Quartermaster,  Commissary  and  Medical  departments 
worked  to  make  the  new  army  fit  for  the  field,  and,  finallj',  what  was 
accomplished   and   the  results. 

NOT  A  DEFENSE,  FOR  THAT  IS  NOT  NEEDED. 

In  presenting  this  statement  I  do  not  make  it  as  a  defen.se  of  the  War 
De])artment,  for  it  needs  none.  It  is  simply  an  official  and  authentic 
declaration  of  facts,  founded  upon  official  records  and  actions.  It  tells 
the  story  of  preparation  before  the  war  and  what  the  War  Department 
did.  and  "what  it  accomplished  during  the  war,  in  language  for  the  people. 
There  arc  no  excuses,  no  elaborations,  no  exaggeration.  It  is  simply  the 
truth,  as  told  by  the'  records,  and  shows  for  the  first  time  exactly  what 
the  Administration  and  the   War  Department  did. 

It  is  official  and  authentic.  The  figures,  data  and  statements  can  all 
be  proven  by  records  in  the  Department,  while  the  statements  in  regard 
to  certain  actions,  loudly  attacked  by  ignorant  critics,  clearly  and  forcibly 
answer  these  charges. 

HOW   PREPARATION   WAS   HAMPERED. 

The  story  starts  with  the  condition  of  the  army  at  the  beginning  of 
the  year  and  the  number  of  officers  and  men  then  on  a  peace  basis.  As 
events  of  February  last  made  war  seem  certain,   preparations  for  the  in- 


evitable  -.vere  begun,  but  legal  restrictions  and  lack  of  Congressional  action 
did  much  to  hamper  these  preliminary  and  necessary  steps.  Notwithstand- 
ing these  obstacles,  the  "War  Department  went  on  with  its  work  as  best 
it  could,  but  it  was  not  until  war  was  actually  declared  that  authority- 
was  given  to  go  ahead  with  the  vast  work  necessary  to  put  a  great 
army  in  the  field.  It  is  here  shown  how,  in  the  short  period  of  five  weeks, 
Adjutant-General  Corbin,  with  his  four  assistants,  under  the  direct  super- 
vision of  the  President,  organized,  commissioned  and  assigned  to  duty  over 
800  generals  and  staff  officers,  and  enrolled  and  mustered  into  service  the 
regiments  of  the  vast  army  which  sprang  into  existence  in  answer  to  the 
President's  call. 

The  cry  has  been  that  politics  had  much  to  do  with  the  appointment  of 
general  and  staff  officers,  but  it  is  shown  that  no  party  or  faction  was 
recognized.  The  Democrats  asked  for  and  were  given  as  much  as  the 
Kepublicans.  The  South  received  equal  patronage  with  the  North.  There 
was  no  East  or  West;  all  were  treated  on  equality  and  the  best  man,  no 
matter  where  he  came  from  or  his  politics,  was  chosen,  so  far  as  in  the 
President's   knowledge  and   power. 

In  making  selections  from  18,000  applicants  a  little  over  36  per  cent  were 
chosen  from  the  regular  army. 

THOSE  SONS  or  FATHERS. 

A  great  deal  has  been  said  and  printed  about  the  appointment  of  "sons 
of  fathers,"  grandsons  and  nejjhews  to  staff  appointments.  The  President 
did  appoint  less  than  forty  young  men  who  happened  to  have  illustrious 
ancestors,  but  they  were  all  bright,  accomplished  men.  who  had  made 
reputations  in  their  own  sphere  and  who  were  anxious  to  serve  their 
country  by  going  to  the  front.  With  less  than  half  a  dozen  exceptions 
all  of  these  men  did  good  work  after  they  had  a  few  weeks'  experience. 
The  records  show  that  the  joung  men  in  the  army  did  the  best  work; 
were  more  energetic  and  efficient  than  many  of  the  older  ones.  A  few 
figures  will  show  exactly  how  many  favorite  sons  the  President  appointed, 
and  like  all  other  criticisms  and  complaints  the  official  figures  will  show 
how  a  single  example  has  been  taken  for  the  whole. 

President  McKinley  appointed  836  general  and  staff  officers.  Of  these  33 
were  sons  of  distinguisiied  ancestors,  25  were  "sons  of  fathers,"  as  critics 
have  called  them,  4  were  grandsons,  3  were  nephews,  1  was  a  son-in-law 
and  4  were  appointed,  as  the  yellow  journals  declare,  by  social  "pull." 

Of  all  the  staff  appointments  40  were  chosen  bj'  Senators  and  appointed 
on  their  recommendation.  Ten  of  these  wSenators  were  Democrats,  and 
of  these  more  than  one  asked  for  and  received  more  than  one  appointment. 
Twenty-six  staff  officers  were  appointed  on  recommendations  of  Repre- 
sentatives in  Congress,  Certainly  if  the  representatives  of  the  people  could 
not  recommend  appointments,  to  whom  could  the  President  turn  for  advice? 

Of  all  the  836  appointments  but  three  were  President  McKinley's  per- 
.sonal  appointments,  one  was  personal  to  Vice-President  Hobart;  six  by 
personal  recommendation  of  the  Secretary  of  War  and  one  by  that  of 
Senator  Hanna,  but  there  were  39  other  Senators  who  asked  the  same 
favor,   and   the  President  granted   what  they   desired. 

CONGRESS  PARTLY  TO  BLAME. 

A  clear  statement  is  made  of  what  the  War  Department  asked  of  Con- 
gress  and   what  Congress   granted. 

It  is  interesting  to  note  in  this  regard  that  to  the  failure  of  Congress  to 
carry  out  the  War  Department's  recommendation  as  embodied  in  what  is 
known  as  the  Hull  lleoi  ganization  bill  can  be  traced  a  good  deal  of  the 
suffering  and  di&ease  of    the    troops.     The   War    Department  wanted   the 


regular  army  increased,  but  the  pressure  from  the  country  forced  Con- 
oress  to  act  otherwise,  and  the  volunteer  service  was  made  up  by  giving 
preference  to  the   State  militia. 

The  comjiarisons  givcTi  show  that  the  death  rate  among  the  volunteers 
and  the  regulars  is  sadly  against  the  former.  This  is  emphasized  by  the 
report  from  the  camp  at  Chickamauga.  There  the  volunteers  and  the 
regulars  were  camping  side  by  side  in  the  ratio  of  about  two  of  the  former 
to  one  of  the  latter,  and  there  were  425  deaths  among  the  volunteers  and 
only  one   aiuong  the   regulars. 

The  chapter  in  regard  to  how  and  why  the  camps  were  chosen  is  ex- 
ceedingly interesting,  and  gives  the  reasons  of  the  Department  for  selecting 
Chickamauga,  Alger  and  Tampa  for  places  of  mobilization.  That  part 
referring  to  Camp  Wikolf  at  Montauk,  is  also  full  of  importance  just  now. 

WORK    OF    QUARTERMASTER'S    DEPARTMENT. 

The  work  of  the  Ordnance,  Quartermaster.  Subsistence  and  Medical  De- 
1  artments  is  treated  under  separate  heads.  The  unreadiness  of  the  country 
for  war  is  especially  shown  by  the  Ordnance  Department's  being  siuldenly 
called  u])on  to  equip  a  quarter  of  a  million  men  with  a  class  of  articles 
not  produced  by  private  manufacturers.  It  is  shown  why  the  Springfield 
rifles  had  to  be  used  and  why  smokeless  powder  could  not  be  furnished. 
Every  means  was  \ised  to  provide  the  latter  in  time,  but  it  could  not  be 
obtained  until  the  war  was  practically  over  and  too  late  to  use.  The  diffi- 
cidties  in  providing  artillery  with  equijmient  are  explained  by  the  lack  of 
appro])riations  ])rovided  before  the  war  began. 

The  heroic  work  done  by  the  Quartermaster's  Department  is  fully  shown, 
together  with  exactly  what  that  work  consisted  of.  Considering  the  too 
few  officers  provided  by  law  and  the  action  of  Congress  for  years  back 
in  insisting  upon  economical  appropriations  for  this  Department,  the  way 
the  Quartermaster's  Bureau  equipped  an  army  of  a  quarter  of  a  million 
ought  to  come  in  for  praise  instead  of  abuse. 

The  troopship  question  as  well  as  that  of  supplying  the  army  with  every- 
thing that  goes  to  make  up  an  army,  except  men  and  food,  fell  to  the 
Quartermaster's  De])artment,  and  in  a  clear  and  straightforward  manner 
the  great  work  of  this  bureau  is  laid  before  the  public  for  the  first  time. 

SIMILAR  DIFFICULTIES. 

The  difficulties  under  which  the  Commissary  or  Subsistence  Department 
labored  for  lack  of  legal  power  aud  ability  to  buy  supplies  in  open  market 
were  similar  to  those  of  the  Quartermaster's  Bureau.  The  law  provides  that 
the  Subsistence  Department  shall  purchase  the  food,  but  it  does  not  allow 
it  to  cook  it.  A  great  deal  of  trouble  and  disease  resulted  from  this  and 
this  Bureau  has  been  blamed.  It  is  shown  that  the  Commissary  Department 
furnished  sufficient  and  good  food  to  the  soldiers,  but  it  is  also  shown  that 
they  could  not  compel  them  to  cook  or  use  it  properly. 

COMPARISON  IN  DEATH  RATE. 

One  of  the  most  interesting  portions  of  the  article  is  the  compansona  made 
of  the  death  rate  of  this  war  with  those  of  former  wars  in  the  West  Indies, 
as  well  as  abroad.  The  first  expedition  sent  to  the  West  Indian  Islands  was 
that  bv  the  English.  The  land  forces  numbered  14,000.  In  this  expedition 
the  losses  were  1  790  officers  and  men  killed,  wounded  and  missing,  w'l'le 
the  losses  from  disease  weie  about  50  per  cent  of  the  total  forces.  In  180^, 
during  the  French  expedition  to  the  West  Indies,  58,545  men  were  sent  to 
the  islands.     In  four  months  the  loss  from  disease  reached  the  astounding 


6 

figure  of  50,207,  or  a  mortality  of  585  per  thousanrl.  Of  the  8,275  survivors 
3,000  were  reported  untit  for  duty.  Compare  these  terrific  losses  with  the 
almost  insigiiititant  loss  of  our  own  army  in  Cuba.  D\iring'  the  same  period 
as  the  Fieuch  expedition  our  af^f^-re^ate  loss  from  all  causes  was  but  2,910, 
out  of  a  total  force  of  274,717  otticers  and  men,  or  a  percentaf^'e  of  1.059. 

The.se  figures  become  more  significant  when  it  is  stated  that  during  the 
present  war  Spain  has  carried  to  the  island  135,000  men,  of  whom  but  85,000 
remain. 

Disease  caused  this  great  havoc,  for  her  lo.sses  in  battle  have  been  in- 
significant. 

THE  MEDICAL  DEPARTMENT. 

The  statement  in  regard  to  the  medical  department  shows  exactly  with 
what  force  and  lack  of  preparation  on  account  of  legal  obstacles  that  depart- 
ment entered  the  war;  how  it  was  built  up,  and  at  the  same  time  clearly 
explains  much  of  the  horrors  and  discomforts  which  our  soldiers  were 
obliged  to  suffer.    This  is  but  a  brief  outline  of  what  is  set  foi-th  fully  below. 

THE  RESULTS  OF  THE  WAR. 

The  results  of  the  war  are  too  well  known  to  require  much  attention. 
To  sum  them  up  in  a  few  words  the  I'nited  States,  in  the  short  sjiace  of  100 
da_\s,  organized,  armed  and  equipped  and  provided  transportation  for  an 
army  of  over  a  quarter  of  a  million  of  men;  conducted  campaigns  separated 
by  10,000  miles  of  land  and  water;  humiliated  and  destroyed  the  enemy 
wherever  met,  without  one  single  reverse.  And  this  with  the  small  loss  of 
but  a  little  over  1  per  cent  from  all  causes — an  achievement  unparalleled  in 
the  history  of  warfare,  savage  or  civilized,  and  which  will  be  referred  to  by 
critics  of  the  future  as  the  military  marvel  of  the  century. 

ON  A  PEACE  BASIS. 

How  the  Army  Was  Situated  Before  the  Hostilities  Broke  Out. 

The  year  1898  began  with  the  United  States  at  peace  with  the  world;  its 
army  on  a  peace  basis,  of  2,164  officers  and  25,350  enlisted  men,  embracing 
(in  addition  to  the  general  staff  corps,  and  inchuling  one  battalion  of  en- 
gineers) ten  regiments  of  cavalry,  five  regiments  of  artillery  and  twenty-five 
regiments  of  infantry,  gathered  in  various  posts  throughout  the  country-. 
The  entire  force  was  well  armed,  well  clothed,  well  housed,  well  fed,  and 
regularly  paid;  all  of  the  men  in  splendid  spirits  and  excellent  physical 
condition.  A  state  of  discipline  prevailed  which  knew  nothing  but  lo3'alty 
and  obedience,  awaiting  any  call,  ready  for  any  service. 

COAST  DEFENSE  INCOMPLETE. 

An  elaborate  scheme  for  coast  defense,  devised  in  ISSfi,  was  not  only  in- 
complete, but  just  fairly-  begun;  but  few  guns  had  been  mounted,  and  the 
few  others  made  ready  for  mounting  with  meagre  appropriations  had  not 
left  their  factories,  owing  to  the  failure  of  Congress  to  provide  the  neces- 
sary funds  asked  for  from  time  to  tiine  by  the  Chief  of  Ordnance. 

The  devastating  war  in  Cuba  which  had  waged  for  the  two  and  one-half 
years  preceding,  occupied  the  minds  of  the  American  people.  Neither  the 
Administration,  the  War  Department  nor  any  of  its  bureaus  have  anything 
to  excuse,  but  a  few  words  of  explanation  touching  the  obstacles  to  be 
overcome,  considered  in  connection  with  the  results  obtained,  will  ai^jjeal  to 
the  reason  of  fair-minded  people  who  nuiy  have  or  who  would  criticise  upou 
imperfect  knowledge  or  false  statements. 


LACK  OP  CONGBESSIONAL  AUTHORITY. 

Many  legal  restrictions  hampered  and  embarrassed  the  transaction  of  V)us- 
ine-ss.  Indeed,  only  those  conducting  the  affairs  of  the  war  can  have  any 
idea  of  the  handicap  placed  by  Congress  on  the  War  Department  and  the 
serious  obstacles  which  have  made  it  impossible  to  accomplish  ready  and 
efTective  work  at  all  times. 

During  the  War  of  the  Rebellion  the  Secretary  of  War  exercised  to  its 
fullest  extent  the  power  which  then  lawfully  belonged  to  the  heads  of  the 
several  departments  in  controlling  and  directing  the  appfopriations  voted 
and  placed  under  his  care.  Can  it  be  qiiestioued  that  the  arm  of  the  great 
vSecretary  was  streiigthened  by  this  prerogative  which  eiuihled  him  to  main- 
tain complete  control  and  directive  i)ower  over  the  expenditures  necessary 
to  a  successful  prosecution  of  his  woi'k?  This  power  over  expenditure  re- 
mained with  the  Secretary  of  War  until  March  30,  1Sfi8,  when  Conjrress 
deprived  him  of  it  and  placed  over  him  the  Comptroller  of  the  Treasury, 
with  jiower  to  reverse  his  action  and  disallow  his  payments;  the  effect  has 
made  contractors  timid  and   slow. 

Nine  successive  Attorney  Generals  (Wirt,  l?errian,  Taney,  Butler,  i^everdy 
Johnson,  Crittenden,  Cushing,  Bates  and  Stanbery),  after  ehiborate  consid- 
eration of  the  same  question,  held  that  it  was  essential  to  the  ]n-oper  and 
successful  administration  of  the  (lovernment  that  the  executive  heads  of 
the  several  departments,  in  the  matter  of  expenditures  of  money,  should 
exei'cise  and  control  authoritative  direction,  not  subject  to  the  reversal  of 
the  Comptroller  or  any  accounting  officer  of  the  Treasury. 

RED  TAPE  HAMPERED   PREPARATIONS. 

In  the  work  of  organizing,  eqviipping,  subsisting,  clothing,  sheltering, 
transporting  and  providing  munitions  of  war,  medical  supplies  and  surgical 
aid,  the  numerous  and  varied  expenditures  incident  to  military  operations, 
require  prom])t  and  decisive  action  in  the  matter  of  expenditures,  with 
prompt  and  certain  payment  if  satisfactor,y  results  are  to  be  obtained. 

At  the  outbreak  of  the  Hispano-American  war,  no  supplies  in  large  quan- 
tities could  be  purchased  without  advertisement;  and  copies  of  advertise- 
ments were  required  to  be  submitted  to  and  approved  before  publication, 
by  the  Secretary  of  War,  or  payment  could  not  be  authorized.  The  news- 
jiapers  of  the  National  capital  were  excluded  by  law  from  publishing  adver- 
tisements, except  for  supplies  and  services  to  be  used  in  the  District  of 
Columbia. 

THE  ARMY  REGULATIONS. 

There  has  been  criticism  of  the  army  regulations.  Tt  is  admitted  that  as 
they  are  now  constructed  they  are  cumbersome,  but  they  are  the  product 
of  thirty  years'  work  and  experience.  To  have  changed  them  materially 
when  war  was  declared  or  during  the  campaign  would  have  created  no  end 
of  confusion  and  perhaps  disaster.  What  changes  could  be  made  at  such  a 
time  were  made.  The  army  regulations  under  which  the  War  Department 
is  working  were  revised  under  a  former  Democratic  Secretary  of  War. 

CONGRESS  OBJECTED  TO  TRAINED  COOKS. 

For  over  twenty  years  efforts  have  been  made  to  secure  legislative  action 
for  the  enlistment"  of  trained  cooks  for  the  military  service,  but  it  was 
denied  imtll  after  war  was  declared. 

l\v  the  same  legal  restrictions,  the  number  of  cavalry  and  artillery  horses 
wns  liniited  to  the  number  of  mounted  men  in  the  service,  not  allowing 
;■   r  a  single  breakdown,  a  single  death  or  a  single  remount;  and  the  number 


of  draft  animals  was  limited  to  5,000,  a  number  by  no  means  sufficient  to 
mobilize  the  small  regular  army. 

No  law  existed  which  enabled  the  War  Department  to  reg-ulate  and  pro- 
tect explosive  mines  and  mine  fields  in  the  waters  of  the  United  States. 

HAMPERED   BY  OLD   DECISIONS. 

At  the  present  time,  a  serious  embarrassment  arises  to  pay  for  certain 
advertisements  which  were  essentially  necessary  in  the  matter  of  procuring 
recruits  and  volunteers  for  the  army,  and  to  supply  wood  for  the  troops 
near  Tampa,  and  to  provide  cavalry  horses  for  the  .service.  Notwithstanding 
the  vouchers  for  these  items  were  approved  by  the  Secretary  of  War,  the 
Second  Auditor  of  the  Treasury  adheres  to  a  decision  made  in  1876,  that 
written  authority  of  the  Secretary  of  War  must  be  obtained  before  pujolica- 
tion,  or  pajment  must  be  witliheld. 

Section  3048,  Revised  Statutes,  provides  that  no  advance  of  public  money 
shall  be  made  in  any  case  whatever,  and  agents  of  express  companies  fre- 
quently refuse  to  forward  goods  without  payment  in  advance. 

UNHEEDED  APPEALS  TO  CONGRESS. 

The  foregoing  are  merely  a  few  of  the  cases  in  which  it  became  necessary 
for  the  War  Department  to  apply  to  Congress  for  legislation.  Many  in- 
stances might  be  shown  where  the  dispatch  of  public  business  and  the  work- 
ings of  the  bureaus  of  the  Department  were  embarrassed  and  delayed  by 
reason  of  its  head  being  deprived  of  final  authority  in  the  matter  of  allow- 
ance of  accounts  and  expenditures. 

ATTACKS  PROM  THE   REAR. 

The  supply  departments  have  been  the  subject  of  bitter  attack  from  the 
rear,  though  the  American  soldier  at  the  front  has  courageously  borne  the 
hardships  of  war,  which  he  expected  and  knows  are  unavoidable,  with  but 
few  complaints.  The  partisan  jovirnals  have  spread  discontent  and  created 
sorrowful  anxiety  at  home. 

President  McKinley  and  the  officers  of  his  Administration,  continually 
since  assuming  office,  had  been  alert  and  active  to  bring  the  struggle  to  a 
(lose  and  give  peace  and  stable  conditions  to  Cuba,  and  sought,  if  possible, 
to  accomplish  the  end  without  recourse  to  arms. 

DRIVEN  INTO  WAR. 

Jaundiced  journals  and  jingo  orators  manufactured  a  restless  disposition 
and  imj)atient  demand  from  the  people  for  precipitate  action,  and  the  temper 
of  the  Spanish  people  was  such  that  pacific  diplomacy  became  unpopular  in 
both  countries.  Notwithstanding  this  public  pressure,  the  President  and 
his  associates  worked  incessantly  for,  and  believed  that  peace  could  be  main- 
tained, most  of  them  having  learned  on  the  battlefield  what  war  meant,  what 
distress  and  sutfering  it  entailed,  and  sought  to  save  the  nation  from  its 
dreadful  consequences.  Therefore  but  little  was  done,  and  but  little  could 
be  done  in  prejjaration  for  war,  without  increasing  its  chances.  The  publi- 
cation of  the  l)e  Lome  letter,  speaking  disparagingly  of  the  President  on 
February-  8.  added  fuel  to  a  fire  which  burst  into  a  blaze  of  wrath  and  in- 
dignation on  Februarj'  15,  when  the  world  was  horrified  by  the  destruction 
of  the  battleship  Maine  in  Havana  harbor. 

CONGRESS  GIVES  A  LITTLE  AID. 

One  week  following  that  disaster  Congress  increased  the  army  of  the 
United  States  by  the  addition  of  two  regiments  of  artillery.    This  was  hardly 


a  war  measure,  however,  but  merely  an  additional  force  required  to  care 
tor  the  extra  guns  of  costly  pattern  which  had  been  mounted  along  the  sea 
coast  and  the  need  for  which  had  been  shown  for  a  long  period  previous 
though,  through  political  fear,  the  legislation  had  not  been  enacted  into  law! 

THE   DEFENSE   BILL. 

By  IMarch  8  the  situation  had  grown  so  grave  that  Congress,  upon  the 
request  of  the  President,  appropriated,  by  unanimous  vote,  the  sum  of 
iB50.000,000  for  the  National  defense.  This  act,  however,  was  viewed  as 
more  of  a  peace  than  a  war  measure,  and  three  days  later  the  new  Spanish 
:Minister,  Senor  Polo  y  Bernabe,  was  received  by  the  President  of  the  United 
States 

WAR  RESOLUTIONS 

It  was  not  until  April  11  that  the  President  asked  authority  of  Congress. 
to  intervene  in  Cuba  by  force  to  re-establish  peace  and  order'in  the  island. 
After  nearly  a  week  of  debate  the  resolutions  were  passed.  The  President 
signed  them  on  April  20  and  sent  the  ultimatum  to  Spain. 

On  the  following  day,  April  21,  the  war  broke  out,  and  two  days  later  came 
the  call  for  125,000  volunteers,  followed  by  a  second  call  for  75,000.  In  the 
meantime  Congress  had  passed  a  law  increasing  the  regular  army  to  61,000 
and  also  providing  for  sixteen  regiments  of  United  States  volunteer  engi- 
neers, cavalry  and  infantry. 

HOW  A  VAST  ARMY  SPRANG  UP. 

Mustering  was  carried  forward  vigorously  in  every  State  of  the  Union, 
and  in  the  short  space  of  one  month  this  vast  army  of  nearly  two  hundred 
and  twenty-five  thousand  men  were  suddenly  gathered  together,  and  the 
staff  departments  had  to  be  organized  and  were  called  upon  to  equip  and 
supply  them. 

WORK  OF  THE  ADJUTANT-GENERAL. 

In  the  short  period  of  five  weeks  the  Adjutant-General  of  the  Army  with 
his  four  assistants,  at  their  desks  constantly  from  8  in  the  morning  until 
after  midnight  week  days  and  Sundays,  had  organized  his  working  force, 
issued  commissions  to  and  assigned  to  duty  over  800  generals  and  general 
staff  officers,  enrolled  and  mustered  the  regiments  of  this  vast  army  into 
service  of  the  United  States,  completed  the  papers,  gathered  them  into 
tamps  of  instruction  and  organized  them  into  brigades,  divisions  and  army 
<'orps,  and  conducted  Mithout  error  the  overwhelming  correspondence  aris- 
ing from  the  abnormal  conditions,  which  ran  the  average  of  his  telegrams 
to  over  500  and  his  letters  to  over  1,000  per  day,  touching  every  intricate 
legal  question  afiecting  personal  and  public  interests;  surrounded  too,  by 
throngs  of  Congressmen  pressing  tlie  claims  of  their  constituents,  news- 
])aper  men  eager  to  furnish  their  jiapers  with  accurate  and  comprehensive 
)-eports  of  proceedings  and  progress,  and  a  crowd  of  persistent  callers  seek- 
ing personal  advantage. 

NO  PARTY  OR  FACTION  RECOGNIZED. 

Thei'e  were  over  eighteen  thousand  applications  for  appointment  of  gen- 
eral and  staff  officers;  the  President  in  his  selections  and  appointments  from 
ihis  vast  number  recognized  no  party  or  faction.     Of  the  83G  appointed,  301, 

CofW 


10 

or  a  little  over  30  per  cent,  were  chosen  from  the  reg-vilar  army — a  larg'er 
percentage  than  was  ever  selected  to  officer  any  volunteer  army  organized  in 
the  United  States;  and  all  would  have  been  taken  from  the  regular  army  if 
possible,  but  so  large  a  number  could  not  be  spared  without  seriously  im- 
pairing its  efficiency.  The  regular  army  was  recognized  by  military  men, 
and  tlioughtful  statesmen,  as  already  too  small,  and  its  officers  had  been 
reduced  by  the  withdrawal  of  200  for  lliustering  and  recruiting  duty, 

MAJORITY  OF  OFFICERS  WERE  REGULARS. 

Of  the  major-generals  appointed,  all,  with  the  exception  of  five,  were  from 
the  regular  army,  and  of  these  five  three  were  graduates  of  the  Military 
Academy  and  all  of  them  soldiers  of  distinction  and  National  reputation. 

Of  the  seventy  brigadier-generals  appointed,  forty-two  were  from  the 
regular  army,  and  of  the  others,  five  were  gradiuites  of  the  iMilitary  Acad- 
emy and  the  remainder  men  who  had  won  rexJutations  as  soldiers  on  the 
battlefield. 

HOW  STAFF  OFFICERS  WERE  CHOSEN. 

Of  the  seven  hundred  and  forty-eight  staff  officers,  two  hundred  and  fifty- 
six  were  chosen  fi'om  the  army;  of  those  selected  from  civil  life,  many  were 
graduates  of  the  Military  Academy,  or  had  seen  service,  and  all  were  ap- 
pointed upon  the  recommendation  of  chiefs  of  staff  departments,  other  sol- 
diers, and  of  the  representatives  elected  by  the  people  to  promote  their  wel- 
fare and  guard  their  every  interest.  Of  the  remaining  four  hundred  and 
ninety-two  civilian  appointments,  over  one-half  are  in  the  Medical  Depart- 
ment, Pay  Department  and  the  Signal  Corps,  the  only  field  from  which  men 
in  such  numbers,  possessing  approximately  the  required  technical  knowl- 
edge, <-ould  be  drawn. 

The  appointment  of  officers  of  the  staff  would  have  produced  at  once  an 
efficient  service,  if  equal  care  had  been  exercised  by  the  Governors  of  all  the 
States  to  appoint  none  but  good  regimental  and  company  officers.  A  staff 
officer's  work  is  rendered  futile  by  neglect  or  lack  of  knowledge  on  the  part 
of  line  officers.  Over  the  appointment  of  the  latter  Congress  gave  the  Presi- 
dent no  power,  but  instead,  reserved  it  to  the  Governors,  and  in  one  State 
the  Governor  went  so  far  as  to  disband  the  National  Guard  before  muster- 
ing began,  so  that  the  officers'  positions  in  the  volunteers  might  be  more 
easily  bestowed  uywu  political  friends. 

Inall  assignments  to  duty,  care  was  exercised  to  see  that  only  trained 
officers  of  the  regular  army  were  put  in  position  of  high  authority  and 
great  i-esjionsibility. 

WHAT  WAS  ASKED  OF  CONGRESS. 

Every  general  commanding  the  army  since  the  Civil  War  has  included 
in  his  annual  report  from  time  to  time  a  recommendation  to  Congress  for 
a  reorganization  of  the  infantry  arm  of  the  service  upon  modern  lines; 
and  every  Congress  for, the  same  period  has  had  upon  its  calendar  a  bill 
embodying  such  features;  and  in  the  spring  of  1898,  when  war  seemed 
imminent  and  apparently  near  at  hand,  Mr.  Hull,  chairman  of  the  House 
Military  Committee,  draited  a  bill  embodying  the  ideas  of  the  most  ex- 
perienced officers  of  the  army,  which  provided  for  an  increase  of  the  regu- 
lar establishment  to  about  100.000  men.  This,  it  was  confidently  expected 
at  the  War  Department,  would,  as  a  war  measure,  be  enacted  into  law; 
and  the  thought  given  to  pi-elimiuary  preparation  proceeded  with  that  end 
in  view. 


11 


"WHAT  CONGRESS  GRANTED. 


The  organized  militia  opposed  the  passage  of  such  a  measure,  fearing 
that  if  it  became  a  law  it  would  destroy  their  organization  by  replacing 
it,  and  Congress  failed  to  pass  the  measure.  Had  this  bill  become  a  law, 
the  splendid  recruiting  organization  of  the  regular  army,  with  the  multi- 
tude of  applications  for  enlistments,  could  have  been  quickly  recruited 
to  the  full  strength  from  men  chosen  with  jieculiar  fitness  for  military 
service,  without  the  strong  ties  binding  them  to  home,  school  and  busi- 
ness, which,  when  excitement  wanes,  breed  discontent  and  nostalgia.  All 
of  the  men  so  enlisted  would  have  been  quickly  gathered  in  companies 
and  regiments  of  the  regular  army,  whei-e,  with  their  veteran  comrades 
side  by  side  in  the  same  tents  and  the  same  messes,  they  would  have 
quickly  adapted  themselves  Jo  the  splendid  discipline  and  thorough  instruc- 
tion under  the  watchful  care  of  the  trained  and  zealous  officers  so  necessary 
to  the  health,  instruction  and  efficiency  of  an  army. 

REGULARS  AND  VOLUNTEERS. 

By  this  failure  it  became  necessary  to  send  the  regular  army,  small  as 
it  was,  in  compact  regiments,  carefully  looking  after  their  own  health  and 
comfort,  and  side  by  side  were  regiments  of  men  equally  pati'iotic  and 
zealous  but  suffering  from  a  lack  of  knowledge,  which  rendered  the  super- 
iority of  the  one  over  the  other,  so  apparc^* 

DEATHS:  VOLUNTEERS,  425;  REGULARS,  1. 

In  the  camp  at  Chickamauga,  where  the  volunteers  and  the  regulars 
were  camping  side  by  side,  in  the  ratio  of  about  two  of  the  former  to 
one  of  the  latter,  there  were  425  deaths  among  the  volunteers  and  only 
one  of  the  regulars. 

No  braver,  no  more  zealous,  no  more  devoted  soldiers  ever  followed  a 
country's  flag  than  the  volunteer  soldiers  in  the  American  army;  but 
putting  a  gun  in  a  man's  hand  no  more  makes  him  a  soldier  than  putting 
a  plane  in"  his  hand  makes  him  a  carpenter.  Our  people  and  their  repre- 
sentatives have  indulged  in  this  mistake  for  thirty  years. 

The  science  of  arms  is  a  profession  which  requires  a  long  apprenticeship 
and  careful  training  under  schooling  of  a  master,  and  no  amount  of  . 
patriotism  and  no  degree  of  bravery  can  make  up  for  the  lack  of  such 
training  and  apprenticeship.  If  without  it  great  results  are  obtained  it 
is  at  the  exjienditure  of  life  to  a  degree  so  shocking  that  the  true  cause 
is  lost  to  sight  for  the  moment  and  until  reason  makes  it  plain. 

CONGRESS  ACTS— BUT   TOO   LATE. 

Finally  Congress-  did  effect  a  partial  reorganization  and  about  doubled 
the  enlisted  strength  of  the  regular  army,  but  did  it  at  a  time  when  the 
States  were  organizing  their  own  troops  and  the  influence  of  friends  m 
regiments  already  enlisted  carried  the  men  into  the  State  organizations 
rather  than  the  regular  army,  and  delayed  its  i-ecruitment. 

HO"W  AND  WHY  CAMPS  "WERE  CHOSEN. 

■  After  the  State  troops  were  mustered  into  the  United  States  service  it 
became  necessary  to  gather  them  into  large  camps  of  instruction  for  the 
purpose  of  organization  and  formation  into  brigades,  cliyisions  and  army 
corps.  Several  points  of  concentration  were  selected,  notably  Chickamauga 
on  account  of  the  great  extent  of  country  there  owned  by  the  United 
States,  and  over  which  100,000  men  had  once  engaged  m  the  grand   man- 


12 

euvers  of  a  great  battle.  The  selection  was  influenced  by  the  splendid 
character  of  the  i-oacls  throughout  the  park,  its  adaptability  to  camping- 
purposes  on  account  of  abundant  shade,  open  fields,  rolling  surfa<-e  and  the 
splendid  water  supply,  as  reported  by  (ieii.  Hoynton,  chairman  of  the  Park 
Commission. 


WHY  CAMP   ALGER  WAS  SELECTED. 

In  a  great  war  between  two  nations  the  capital  of  the  country  is  always 
supposed  to  be  a  final  objective,  and  one  of  the  military  wealcnesses  of 
the  United  States  is  the  location  of  its  beautiful  capital  within  fifty  miles 
of  the  sea,  and  upon  a   tide-water  river. 

With  an  adversary  having  nearly  one  hundred  thousand  troops  within 
eighty  miles  of  our  territory,  and  a  navy  sujiposed  to  be  as  strong  if  not 
stronger  than  our  own,  it  was  but  a  reasonable  precaution  to  take  meas- 
ures against  the  possibility  of  an  attack  on  Washington.  For  that  reason 
a  force  of  some  thirty  thousand  men  were  gathered  together  in  the  vicinity 
of  that  citj-  for  the  tlouble  purpose  of  organization,  instruction  and  possible 
defense. 

For  that  reason  Camp  Alger  was  established.  The  site  selected  was  ten 
or  twelve  miles  from  Washington,  upon  which  had  camped  during  the 
W'ar  of  tlie  Kebcllion  frequently  an  eqiuil  and  at  times  a  vastly  greater  force, 
without  inconvenience  or  more  thau  the  average   death-rate  from  disease. 


TAMPA  WAS  NEAR  CUBA. 

Tampa  was  selected  a.s  a  point  of  embarkation  on  account  of  its  prox- 
imity to  the  Cidjan  coast,  and  with  the  thought  that  a  sojourn  in  the 
Southern  latitudes  would  in  a  measure  prepare  the  troops  for  a  climate 
it  was  known  they  must  endure  in  a  tropical  campaign.  As  soon  as  possible 
after  the  embarkation  of  a  portion,  the  remainder  of  the  troops  were  re- 
moved. When  the  danger  of  attack  upon  Washington  had  entirely  passed, 
trutips  were   moved    from   Camp  Alger. 

AS  TO  MONTAUK  POINT. 

Montauk  Point  was  selected  because  of  its  splendid  adaptability  as  a  re- 
cuperating point,  with  salt  water  bathing,  fresh  ocean  breezes,  excellent 
artesian  water,  good  surface  drainage  and  sufficiently  isolated  to  protect 
the  centers  of  jKypulation  of  the  United  States  from  fever  infection  brought 
from  the  tropics  by  the  returning  soldiers. 

In  preparing  the  camp  at  that  point  an  experienced  medical  officer  was 
put  upon  the  ground  immediatelj'  after  the  selection  of  the  site,  who  had 
authority  to  call  upon  the  medical  suppl.v  officer  at  Xcav  York  for  everything 
he  needed,  and  that  officer  wa.s  directed  to  till  all  his  requisitions  without 
reference  to   the   War   Department. 


IT  WAS  THE  BATTLEFIELD  BROUGHT  HOME. 

To  persons  unu.sed  to  the  scenes  and  horrors  of  war,  it  doubtless  pre- 
sented many  sights  of  pity  and  despair,  but  it  must  be  borne  in,  mind  that 
it  was  but  the  rear  of  the  battlefield  of  Santiago  brought  home,  where  the 
terrible  privations  of  that  struggle  would  be  diminished,  and  some  lives 
saved,  which  if  the  troops  had  remained  long  in  Cuba,  or  had  been  trans- 
ported   farther,   would    have   been   lost. 


WAR  AND   PEACE  ARE   DIFFERENT. 

In  g^ithermo-  tog-ether  large  bodies  of  men  it  is  hard  to  impress  upon 
them  that  their  daily  life  must  be  materially  changed.  Men  from  th" 
villages  and  tlie  rura  districts  are  not  able  to  nnders^tand  why  pracTic  ng 
a  mode  of  life  to  which  they  have  been  accustomed  will  eiulanger  a  d 
i,?7-''^'t  "'"'''^  dangerous  and  fatal.  And  this,  as  with  manv  other^fessons 
n  bic  there  seems  to  be  no  master  but  experience,  and  the  only  lessons 
learucd  aud  taken  to  heart  are  those  received  in  that  thorough  school 

ALL    COMPLAINTS    WERE    INVESTIGATED. 

:\rany  individual  coin})la.ints  were  received  at  the  department  in  various 
ways— anonymous  letters  apparently  written  by  soldiers  newspaper  articles 
prepared  far  from  the  scene  of  action,  letters  from  friends  and  relatives 
based  upon  letters  received  from  members  of  their  families  in  the  army 
and  from  membeis  of  Congress,  generally  based  upon  hearsay  evidence! 
Never  was  a  single  complaint  allowed  to  })ass  without  a  thorough  investi- 
g-ation  and  report;  nearly  always  with  the  resul+.  that  the  complaint  was 
trivial  and  not  founded  upon  fact,  but  in  the  few  cases  which  merited 
remedial  measures  they  were  at  once  applied;  and  if  neglect  upon  the  part 
of  olhcers   was  discovered,   they  were   promptly   admonished. 

.    ADVOCATES  OF  WAR  FIRST  TO   COMPLAIN. 

Hardly  had  the  sensational  journals  of  the  country  ceased  their  exciting 
and  inflammatory  editions  crying  for  war  when  they  began  to  magnify 
comjilaints  and  utter  criticisms  as  unjust  as  they  were  pernicious  and 
harmful,  spreading  discontent  in  the  ranks  and  producing  alarm  at  home. 

REMEDIAL  MEASURES  INSTANTLY  TAKEN. 

Immediately  upon  receipt  of  re])orts  at  the  Department  that  sickness 
was  prevalent  in  the  camps,  measures  were  taken  to  remove  the  men  and 
scatter  .the  commands.  Chickamauga  and  Camp  Alger  were  abclndoned, 
but  after  supplies  and  equijjment  had  been  sent  to  those  points  they  could 
not  be  entirely  given  up  until  the  sujjplies  were  properly  distributed.  And, 
moreover,  until  the  camp  lessons  were  learned,  one  suitable  location  was 
as  good  as  another. 

ORDNANCE  DEPARTMENT. 
How  a  Quarter  of  a  Million  Men  Were  Armed  and  Equipped. 

The  bureaus  attracting-  the  most  attention  are  the  Ordnance,  Quarter- 
master's,  Subsistence  and  Medical  Departments. 

When  the  first  call  for  troops  was  made,  the  Ordnance  Department  was 
called  upon  to  suddenly  equip  a  quarter  of  a  million  of  men  with  a  class 
of  articles  not  produced  by  private  manufacturers.  Appropriations  of  Con- 
gress for  these  equipments  for  many  years  had  been  barely  sufficient  for 
replacing  those  worn  out  by  the  regular  army,  which  required  about  5,000 
sets  of  equipments  per  year,  and  to  equip  350.000  men  in  four  weeks  re- 
quired  it    to   increase   its   business   six   hundred-fold. 


14 
NOT   ARTICLES   OF   COMMERCE. 

The  supply  on  hand  was  necessarily  very  small,  and  money  for  the 
increase  in  these  classes  of  equipment  was  only  available  a  few  days  before 
war  had  actually  begun,  when  upon  telegraphic  orders  the  work  of  manu- 
facture was  immediately  commenced  at  the  various  arsenals,  and  was  sup- 
plemented by  purchase  from  contractors;  thoug-h  it  must  be  borne  in 
mind  that  stores  of  this  character  are  not  articles  of  commerce,  and  pur- 
chases from  contractors  were  delated  by  the  time  required  by  manufac- 
turers to  acquaint  themselves  with  the  requirements,  specifications,  mode 
of  manufacture  and  sources  of  material  for  producina-  them';  and  the  degree 
of  excellence  required  was  something-  for  which  the  contractors  were  not 
l^repared,  notwithstanding  the  standard  was  somewhat  reduced. 

VOLUNTEERS'    EQUIPMENT    UNFIT. 

The  first  levy  of  troops  being  made  up  largely  from  the  National  Guard 
of  the  States,  it  was  supposed  from  reports  that  most  of  their  amis  and 
equipment,  though  somewhat  worn,  were  unfit  for  service.  This  expecta- 
tion, however,  was  not  realized,  and  before  the  ti-oops  were  ready  to  take 
the  field  it  was  found  necessar3^  to  replace  three-fourths  of  their  arms  and 
equipment.  Delays,  too,  were  caused  by  failures  on  the  part  of  organiza- 
tions to  make  requisitions  (although  the  requisition  in  this,  as  in  all  the 
flepartments,  is  very  simple,  requiring  merel\  to  sU\te  the  number  of  men. 
the  number  of  serviceable  equipment  on  hand  and  the  number  required  to 
complete  the  outfit). 

Some  delays,  it  is  true,  were  caused  bj'  the  congestion  of  railways  and  the 
inabilitj'  to  pron^ptl.y  distribute  arms  and  equipment  that  had  been  sent 
to  the  different  camps.  Supply  dejwts  were  established  at  Tampa,  Chicka- 
niauga  and  Benicia  Arsenal,  near  San  Francisco,  with  a  view  to  completing 
the  arming  and  equijiping  of  regiments  before  they  embarked  for  foreign 
I'xpeditions,  which   was   successfully   accomplished. 

THE  WORK  ACCOMPLISHED. 

Between  April  15  and  August  31,  the  Department  provided  250,000  sets 
of  infantry  equipnients,  and  30,000  sets  of  horse  equipments,  and  on  the 
later  date  was  prepared  to  produce  infantry  equipments  at  the  rate  of 
8,000  sejs  per  day,  a  set  including  knapsack,  haversack,  with  knife,  fork 
and  spoon,  a  canteen,  a  meat  ration  can,  tin  cup,  cartridge  belt  and  bayonet 
scabbard. 

THE  SPRINGFIELD  RIFLES. 

At  the  outset  of  the  war  the  Department  had  on  hand  an  ample  siipply 
of  caliber  45,  Springfield  rifles,  for  arming  the  new  troops,  and  was  able 
to  supplement  the  supply  of  rifles,  carbines  and  sabers  on  hand  in  suificient 
quantities  to  meet  demands. 

The  iJropriety  of  equipping  the  troops  with  the  45-caliber  rifle  was  not 
at  first  questioned.  Its  excellence  and  accuracy  had  been  proven  by  long 
service;  its  simplicity  and  certainty  to  keep  in  good  fighting  condition 
under  exposure  and  bad  usage  were  known.  Success  with  a  more  compli- 
cated magazine  arm  required  experience  and  time  for  study  upon  the  part 
of  the  officers  and  men.  and  the  troops  called  out  were  already  familiar 
with  the  Springfield  rifle,  and  the  work  in  hand  was  to  complete  this 
armament  and  replace  unserviceable  arms  with  new  ones,  and,  moreover, 
magazine  rifles  were  not  on  hand  and  could  not  be  provided  otherwise  than, 
by  manufacture. 


15 

Many  unjust  criticisms  of  the  Springfield  rifle  liave  appeared  in  the 
public  prints.  It  may  be  stated  tha.t  its  rate  of  fire  and  extreme  range 
are  practically  the  same  as  the  best-known  military  magazine  arm;  and 
the  shock  of  the  blow  imparted  by  the  bullet  at  its  extreme  range  (3,200 
yards)  is  greater.  Its  disadvantages  are  summed  up  in  the  height  of  the 
trajectory  and  the  weight  of  the  cartridge  carried,  which  is  nearly  double 
that  of  the  smaller  bore. 


LITTLE  SMOKELESS  POWDEjh,. 

Prior  to  the  Avar  the  Ordnance  Department  had,  after  a  long  series  of 
exjierinients,  arrived  at  a  satisfactory  smokeless  powder  for  the  45-caliber 
cartridges,  but  no  money,  though  asked  for  by  the  department,  was  ap- 
propriated for  the  maniifacture  of  a  large  reserve  supply.  At  the  commence- 
ment of  hostilities  the  private  cartridge  factories  were  not  prepared  to  use 
the  smokeless  powder  in  the  manufacture  of  cartridges,  and  it  required 
time  to  make  preparation.  Evei'y  resource  of  the  powder  manufacturers 
was  consumed  in  providing  smokeless  powder  for  the  coast  defense  and 
the  field  and  siege  artillery,  and  to  meet  the  demand  for  this  ammiinition 
for  the  time  being  it  was  absolutely  necessary  to  furnish  charcoal  cart- 
ridges. The  manufacture  of  smokeless  powder,  45  caliber  cartridges,  was 
taken  up  as  soon  as  possible,  and,  thoug-h  an  ample  supply  was  provided 
later,  it  was  not  used  in  any  engagement. 

After  the  breaking  out  of  hostilities  the  Ordnance  Department  provided 
about  eighty  million  small  arms  cartridges  of  all  kinds. 

PROVIDING  THE  ARTILLERY; 

The  labor  of  providing  the  artillery  was  even  more  difficult.  The  arma- 
ment and  eqiiipment  of  all  regular  batteries  were  increased  from  four  to 
six  guns.  The  volunteer  batteries  were  armed  and  equipped  generally  as 
fast  as  they  were  ready  to  receive  their  guns,  cartridges  and  equipments. 

When  the  war  began  the  only  field  and  siege  artillery  ammunition  that 
ap]n-opriations  had  enabled  the  Department  to  have  on  hand  was  the  small 
supply  used  annually  by  the  regular  army  for  artillery  practice,  and  a 
small'  reserve  for  emergency.  This  had  been  manufactured  prior  to  the 
adoption  of  smokeless  powder,  and  for  want  of  better  was  immediately 
issued  to  the  batteries  that  were  hastened  to  the  front,  and  was  sulficient 
in  quantity.  .  «,   •      . 

The  manufacture  of  this  ammunition  with  smokeless  powder  m  sutncient 
quantities  for  a  protracted  war  was  commenced  at  once,  and  every  resource 
of  the  arsenals  and  private  establishments  throughout  the  country  was 
brought  to  bear  in  providing  a  quantity  more  than  required  to  meet  the 
prol)able  demands  of  a  protracted  war. 

All  of  the  work  of  the  Department  was  performed  by  a  corps  of  officers, 
claimed  by  the  Chief  of  Ordnance  to-  be  too  small  for  the  regular  army 
in  time  of  i^eace. 

QUARTERMASTER'S   DEPARTMENT. 

Hampered  by  Impossibility  of  Procuring  Supplies  at  Short  Notice. 

The  Quartermaster's  Department  is  the  great  general  supply  department 
of  the  armv.  Its  administration  touches  every  branch  of  army  service. 
Upon  this  department  by  law  is  placed  the  duty  and  responsibility,  among 
others,  of  supplving  ovens  and  cooking  appliances,  every  article  oi  doth;"^. 
shelter  and  stor'age^f  all  kinds,  camp  grounds,  water  and  drainage  facilities, 


16 

all  cavalrj',  artillery  and  draught  horses,  mules,  harness,  ambulances, 
M-ag-ons  and  carts,  veterinarj-  service  and  supiilies,  forage  for  animals,  and 
transportation  not  onlj^  for  its  own  but  for  the  supplies  of  all  other  de- 
partments. It  builds  wharfs  and  docks,  charters  ships  and  boats  of  every 
character  and  executes  contracts  for  rail  and  wagon  transportation. 

TOO  FEW  OFFICERS. 

At  the  beginning  of  the  war  this  department  contained  but  fifty-seven 
officers,  a  number  below  the  needs  of  the  regular  armj-.  It  has  been 
necessary  for  years  to  supplement  its  strength  by  details  of  officers  from 
the  line,  the  same  as  in  other  deijartments.  The  commissioned  personnel 
had  also  to  be  increased. 


UNABLE   TO   PREPARE. 

At  its  supply  depots  were  sufficient  supplies  for  the  wants  of  an  army 
of  25,000.  but  no  more.  Congress  having  for  years  insisted  upon  economical 
a'ppropi-iations  in  all  branches  of  public  service,  and  the  Quartermaster's 
Dejiartment  had  at  the  time  of  the  blowing  up  of  the  Maine  been  unable 
to  make  any  advance  jireparations  whatsoever  for  Mar.  On  March  9,  it 
received  an  allotment  from  the  $50,000,000  a^jpropriated  for  the  National 
defense,  but  the  entire  country  was  as  little  prepared  for  war  and  the 
])roduction  of  war  matei-ials  as  were  the  staff  dei^artments  of  the  army. 

Canvas  for  tents  was  unobtainable,  owing  to  the  great  demand  to  supply 
the  Klondike;  light  materials  for  summer  uniforms  had  to  be  either  woven 
or  brought  from  Europe.  A  uniform  which  afterward  the  Quartermaster's 
Department  bought  for  from  $3.50  to  $4,  cost  officers  who  wanted  them 
quickh^  from  $20  to  $35,  and  they  were  obliged  to  wait  two  weeks,  or 
even  a  month,  before  the  tailors  could  produce  them.  The  wool  for  cloth 
uniforms  had  to  be  dyed,  spun  and  woven.  Open  market  purchases  could 
only  be  made  in  limited  amounts  on  account  of  legal  restrictions. 

DEPARTMENT'S  HANDS  TIED. 

Skilled  employes  oould  not  be  hired  beyond  a  fixed  rate  of  pay,  and  in 
this  way  the  Department  found  its  hands  tied  and  otherwise  haniiJered 
in  the  way  of  supplying  service  for  a  vastly  increased  force.  The  limited 
appropriations  made  by  Congress  had  deprived  the  Department  of  trained 
Avagonmasters  and  packers.  Pack  mules  and  saddles  had  to  be  obtained. 
For  service  beyond  the  sea  transports  had  to  be  purchased  and  fitted  out 
as  best  possible  in  limited  time  for  the  transportation  of  soldiers.  The 
United  States  never  having  engaged  in  foreign  war,  not  a  single  troopship 
was  available.  The  neutrality  laws  j^revented  their  iiurchase  abroad.  >>'o 
vessels  except  those  of  American  build  could  engage  in  the  coastwise  trans- 
jiortation,  even  though  chartered  by  the  Government,  and  Congress  was 
averse  to  granting  American  registiy  to  foreign  bottoms,  forcing  the  De- 
partment into  the  jjurchase  of   foreign   vessels. 

NECESSITY  FOR  HASTE. 

^Miat  had  to  be  done  must  be  done  quickly.  To  have  waited  for  the 
proper  fitting  up  of  the  troopships  would  have  kept  the  soldiers  who  planted 
the  Stars  and  Stripes  over  Santiago  and  Manila  in  the  United  States  until 
the  present  time,  for  it  will  be  October  10  before  the  first  really  modera 
troopship  belonging  to  the  United  States  will  be  off  the  ways  at  Cramp's 


17 

sliipyards,  and  another  will  follow  from  the  yards  at  liath,  M(>.  the  hrst 
week  in  November.  In  the  short  spaee  of  tinie  ocenpied  by  husiilitiis  tlie 
Quartermaster's  Department  has  perforined  its  manifold  duties  with  striki.i-'- 
energy,  and  besides  improvising'  siilUeient  transports  has  purchased  the 
following  for  the  nse  of  troops: 

Horses    ]  7  1  1  ■) 

^l"les      '.'..'.'.'.'.'.'.'.'.'.'.'.v.  2\  ]()M 

Wag-olis    QQ2 

Ambnlances %();j 

Harness    (sets)    ofl  47() 

1  dankets     51  ^[oto 

Campaign  hats    47(),705 

Blonses     no^lOi) 

Trousers    ;55;5,707 

Shoes 707^837 

Tents    of    all    kinds    224,225 

Field   ovens    5,i:;0 

Bread  ovens   I'm 

In  many  eases  it  was  not  what  was  desired,  or  what  was  believed  bv 
experienced  officers  to  be  requisite,  but  it  was  what  could  be  obtained,  'i  I.v» 
old  adage  "any  port  in  a  storm"  was  the  watchword,  not  only  with  this 
Department,  but  the  entire  War  Othce. 

SUBSISTENCE  DEPARTMENT. 
Plenty  of  Supplies  in  Bulk  Always  on  Hand  for  tlie  Troops. 

At  the  beginning  of  the  war  the  Subsistence  Department,  being  compelled 
by  law  to  keep  provisions  for  the  army  on  a  peace  basis  only,  had  thirty 
days'  supplies  on  hand  for  the  regular  army,  Avith  no  reserve  stock,  it  not 
being  in  the  interest  of  the  soldiers  or  the  Government  to  keep  large  sup- 
plies of  food  on  hand  for  fear  of  deterioration,  and  the  appropriation  for  the 
iiseal  3'ear  had  been  almost  entirely  exjiended. 

At  no  time  has  it  been  claimed  that  the  subsistence  supplies  in  bulk  were 
not  present  with  the  troops  at  all  times  and  in  ample  quantities  wherever 
they  were  found,  and  weekly  reports  of  quantities  on  hand  were  rendered, 
to  prevent  a  shortage,  even  if  requisitions  failed  to  arrive. 

GOOD  COOKS  NEEDED. 

The  food  needed  only  proper  cooking.  Gen.  Coppinger  in  his  rejiort  says: 
"The  regulars  lived  well.  The  volunteers  in  too  many  cases  messed  badly, 
but  this  was  owing  to  the  ignorance  and  inexperience  of  the  officers,  who 
did  not  know  how  to  procure  and  care  for  the  raticns,  and  the  ignorance 
of  the  cooks,  who  did  not  know  how  to  cook  them.  1  have  been  esijecially 
impressed  by  the  comfortable  messing  of  the  regular  soldiers  close  to  my 
headquarters,  Avhile  volunteer  troops  in  the  adjoining  field  were  subsisting 
on  chunks  of  ill-cooked  beef  and  vile  biscuit' — an  excellent  field  oven  lying 
neglected  and  unused  close  by." 

The  War  Department  can  furnish  the  articles,  but  it  cannot  cook  the  food 
and  put  it  in  the  soldiers'  moiiths.  The  components  of  the  ration  are  fixed 
by  Congress,  and  its  suitability  or  Tinsiutability  rests  with  that  body,  anil 
not  with  the  Subsistence  Department. 

The  rations  are  am])le  in  quantity  and  made  up  of  staples  v.hich,  by  care- 
ful and  skillful  use,  enables  the  I'egular  army  always  to  make  a  considei-able 
saving,  which  is  sold  for  cash,  and  the  money  derived  fi'om  such  sales  ex- 


18 

ponded  in  the  purchase  of  such  varieties  of  food  and  delicacies  as  cannot  be 
Kept  on  hand,  as  tlie  company  commander  may  deem  necessary  to  the  health 
and  contentmeTit  of  his  men.  The  volunteers  might  have  done  the  same 
with  proper  experience  and  economy. 

SMALL  NUMBER*  OF  OFFICERS. 

At  the  outbreak  of  hostilities  the  Subsistence  Dejjartment  had  but  twenty- 
two  ofHcers,  barely  sulHcient  for  the  25.000  men  of  the  regular  army,  and  an 
increase  in  the  personnel  .was  necessary  to  supply  army  corps,  divisions, 
brigades,  dc])Ots  and  transports  v^ith  commissary  otticers. 

Of  the  thirty-six  appointed,  sixteen  were  from  the  regular  army,  and  to 
have  made  a  greater  number  would  have  stripjjed  some  companies  of  their 
olticers  and  rendered  them  inefficient;  the  new  apjjointee.s,  acting  imder 
trained  chiefs,  it  was  thoiight  would  soon  gain  experience  in  the  special 
Avork  that  was  to  be  done,  and  the  President  took  the  wise  course  of  leaving 
the  line  of  the  regular  army  with  enough  othcers  to  render  it  effective. 

COMPLAINTS  INVESTIGATED. 

Complaints  received  at  the  Department  were  nearly  all  of  a  trivial  char- 
acter, but  nevertheless  were  subjected  to  investigation,  and  in  each  case 
shown  to  be  untrue  and  devoid  of  merit.  Frequently  it  occurred  that  the 
men  reported  to  have  made  complaints  denied  them  when  confronted  with 
the  evidence,  and  it  was  not  infrequent  that  men  who  made  complaint  of  iu- 
suliicient  food,  when  placed  on  the  scales,  showed  that  they  had  gained  in 
weight  since  their  enlistment.  Investigation  shows  that  men  who  subsisted 
upon  the  rations  had  less  sickness  than  the  men  who  ate  indiscriminately  of 
various  articles  for  sale  by  the  hucksters,  or  of  other  food  found  in  the 
countrj'. 

The  men  cannot  be  blamed  for  this  indiscretion;  they  did  not  know  the 
danger  they  ran,  nor  the  necessities  fof  jjrecaution.  Six  months  would  have 
made  a  regular  of  the  volunteer. 

TRANSPORT  DISCOMFORTS. 

Complaints  have  been  made  of  the  discomforts  and  lack  of  food  provision 
on  transports.  Undoubtedly  there  is  some  basis  for  this;  but  as  stated 
before,  it  must  be  remembered  that  such  transports  as  were  wanted  could 
not  be  obtained,  and  many  of  the  sick  returning  from  Santiago  knew  in 
advance  the  hardships  they  would  have  to  endure  on  some  of  the  vessels; 
it  was  a  choice  between  remaining  in  fever-ridden  Cuba  or  returning  to  the 
Lnited  States.  Both  alternatives  presented  great  hardships,  and  both  the 
(iovernment  and  the  men  chose  the  lesser  to  overcome  the  difficulty,  and  re- 
duce the  danger  of  death. 

The  surgeons  received  60  cents  per  day  per  man  to  buy  articles  of  diet 
for  the  sick,  and  in  Santiago  the  amount  allowed  was  7o  cents  per  day. 

FAULT  WITH  THE  LAW. 

B\-  law  the  Subsistence  Department  purchases  the  food.  It  is  transported 
from  the  place  of  purchase  to  the  place  of  issue  by  the  Quartermaster's  De- 
partment, cotiked  on  stoves  jjrovided  by  the  Quarterma.ster's  Dejiartnient. 
(iirried  on  the  soltiieis"  persons  and  conveyed  to  their  mouths  by  c<jui|)- 
i  e<its  provided  by  the  Oidiumce  Dt^partnient;  and  these  three  departments 
I.  i  st  iinder  the  law  make  connection  at  the  soldiers"  mouths.  The  fault, 
if  a:;.v,  exists  with  the  law,  and  not  the  departments. 


THE   MEDICAL   DEPARTMENT, 
Unjust  Criticisms  by  Those  ITnaccustomed  to  the  Horrors  of  War. 

The  medical  depaitnient  of  the  army  seems  to  have  come  in  for  more  than 
a  just  share  of  criticism  and  blame. 

Trior  to  the  blowing-  np  of  the  Maine  it  had  made  no  preparation  for  war. 
except  to  place  the  supplies  on  hand,  which  were  ample  for  the  existiii," 
army,  in  condition  for  ready  issue;  but  immediately  thereafter  'prompt  ste]i;' 
were  taken  to  increase  the  enlisted  personnel  of  the  medical  corps,  and  to 
obtain  supplies,  especially  those  adapted  to  field  service. 

Necessity  was  at  once  created  for  medical,  surg-ical,  field  and  mess  chests, 
litters  and  litter-slings,  medical  instruments  and  varions  other  articles,  all 
of  special  pattern,  not  in  the  market  and  the  manufacture  of  which  re- 
quired time. 

CONGRESS  FAILED  TO  ACT. 

The  act  organizing  the  volunteer  army  provided  three  hospital  stewards  to 
each  regiment.  On  April  23,  the  Surgeon-General  asked  that  twenty-five 
hospital  corps  privates  be  enfisted  for  each  regiment;  and  for  each  division, 
one  steward,  one  acting  steward  and  fifty  privates.  Congress  failed  to  carry 
out  this  recommendation,  and  it  became  necessarj^  to  increase  the  number 
of  ])rivates  in  the  United  States  Hospital  Corps  sufRcientl.y  to  meet  the 
needs  of  the  entire  volunteer  army  of  two  hvmdred  and  fift,y  thousand. 

Congress  increased  the  number  of  hospital  stewards  to  200,  and  measures 
were  at  once  taken  to  recruit  the  hospital  corps  as  rapidly  as  possible.  Men 
were  obtained  by  transfers  from  the  line,  and  by  enlistment  to  the  number 
of  7.000. 

STORES   SPECIALLY   PREPARED. 

Medical  stores  for  nse  of  an  army  in  the  field  are  not  such  as  can  be  pm-- 
chased  in  bulk  in  wholesale  drug  houses.  They  must  be  specially  prepared 
and  speciall.y  packed  to  economize  space  and  withstand  the  dangers  of  tran.s- 
portation  to  which  they  may  be  subjected. 

The  number  of  medical  officers  allowed  by  law  is  inadequate  in  time  of 
peace.  The  total  number  allowed  is  192.  There  are  at  present  thirteen 
vacancies.  Of  the  number  allowed  by  law  six  are  required  in  the  Surgeoii- 
CeneraFs  office  and  Army  Medical  Museum.  Eleven  are  on  duty  at  medical 
supply  depots  as  chief  surgeons  of  military  departments.  One  is  at  the 
Soldier's  Home,  while  fifty-six  are  at  general  hospitals  on  hospital  ships  as 
garrison  posts;  four  are  disabled  by  sickness,  and  five  are  on  duty  as  chief 
surgeons  of  the  Army  Corps.  This  leaves  ninety-seven  medical  officers  avail- 
able for  duty  with  troops  in  the  field.  Of  these  thirty-five  have  been  ap- 
pointed brigade  surgeons  of  voh'inteers  and  distributed  among  the  various 
army  corps.  Since  the  declaration  of  war  there  has  been  a  loss  of  two  hy 
death,  and  twenty-three  are  on  sick  leave.  This  deficiency  in  the  regular 
medical  officers  made  it  necessary  to  employ  more  than  650  contract  sur- 
geons. 

VOLUNTEER  MEDICAL   CORPS. 

Steps  were  taken  at  once  to  organize  the  Volunteer  Medical  Corps.  All 
appointments  were  made  by  the  President,  and  every  one  on  the  recommen- 
dation of  the  Surgeon-General  of  the  army  and  of  other  medical  men  whose 
opinions  were  of  value;  but  the  rapidity  with  which  the  volunteer  army  was 
organized  prevented  many  of  the  contract  surgeons  from  being  subjected 
to°exaniination,  the  urgency  being  so  great  that  it  was  not  practicable  to 
have   examining  boards   pass   upon   their  qualilieations.     The   Surgeon-Gen- 


20 

oral,  however,  endeavored  as  far  as  possible  to  obtain  satisfactory  profes- 
sional indorsement  before  making"  a  contract  with  an  applicant.  Most  of  the 
contract  surgeons  have  disjilaj'ed  energy  and  efficiency,  thongh  time  was 
insufficient  for  them  to  master  the  peculiar  duties  and  requirements  of 
military  surgerv'  and  camp  sanitation.  One  thing,  however,  was  strictly  en- 
forced. If  a  contract  surgeon,  after  reaching  his  post,  was  found  incom- 
petent, he  was  immediately  discharged  and  his  contract  canceled. 

FAULT  WITH   THE   LAW. 

The  number  of  medical  officers  was  fixed  by  Congress,  and,  if  inadequate, 
the  fault  is  with  the  law  and  not  with  the  Department.  True,  deficiencies 
maj'  be  made  up  bj'  emplojing  acting  assistant  surgeons,  but  their  salary 
is  but  $100  per  month,  and  men  jjossessing  the  great  ability  required  of 
military  surgeons  cannot  be  expected  to  enter  the  service  in  great  numbers 
for  such  small  compensation. 

Notwithstanding  all  these  difficulties,  requisitions  were  promptly  filled 
and  stores  forwarded  in  abundance.  In  some  cases  congested  railway  travel 
prevented  prompt  delivery  and  earh-  distribution. 

INSTRUCTIONS   FOR   CAMPS 

The  sanitary  condition  of  camps  wjis  under  the  supervision  of  the  Sur- 
geon-General, and  the  surgeons  of  the  corps,  divisions  and  brigades.  Four 
days  after  the  declaration  of  war  the  Surgeon-General  issued  a  circular 
prescribing  sanitary  measures  to  protect  the  troops  in  the  field,  especially 
in  tropical  climates.  The  subject  was  treated  in  detail,  and  instructions 
given  for  the  preservation  of  the  health  of  troops;  and  again  on  August  8 
attention  was  invited  to  the  same  subject.  Camps  were  constantly  and 
bountifully  supi)lied  with  disinfectant.s,  and  if  not  u.sed  it  was  the  fault  of 
the  surgeons  in  the  field.  In  view  of  the  fact  that  the  army  was  hastily 
organized,  and  the  men  put  into  service  with  the  briefest  possible  delay, 
the  difficulties  of  providing  for  their  medical  wants,  coupled  with  a  lack  of 
special  knowledge  of  newly  appointed  medical  officers,  the  rates  of  disease 
and  death,  as  will  be  shown  by  the  statistics  below,  were  kept  at  a  mar- 
velously  low  figure.  Delays  and  some  confusion  were  inseparable  from 
existing  conditions.  The  machinery  of  the  entire  War  Department  was 
working  at  high  pressure,  and  the  human  machine,  like  a  mechanical  eoji- 
trivance,  will,  when  working  at  its  fullest  speed  for  a  long-continued  period, 
either  break  down  or  occasionally  produce  imperfect  results. 

It  is  the  history  of  all  suddenly  improvised  armies  that  men  suffer  greatly 
from  disease  incident  to  their  unaccustomed  mode  of  life.  The  j)revalencc 
of  disease,  which,  if  occurring  in  civil  life,  would  not  attract  particuhn- 
attention,  under  the  pecidiar  circumstances  and  the  strong  light  of  public 
scrutiny,  become  matters  of  criticism  and  comment. 

Armies  as  hastily  gathered  together  as  that  which  wagetl  the  war  with 
Spain,  in  a  great  many  instances,  bring  the  seeds  of  disease  with  them  to 
the  camps,  as  was  evidenced  in  the  cases  of  manj^  men  dying  in  the  State 
camps  before  the  regiments  were  mustered  in,  and  many  others  within  a 
week  thereafter. 

A  DESPERATE  TASK. 

The  task  of  the  Medical  Department  is  a  desperate  one.  It  is  called  upon 
to  deal  and  come  face  to  face  with  the  horrors  of  war,  in  such  places  that 
persons  entirely  unacquainted  with  such  sights  and  scenes  may  visit  and 
behold,  but  are  helpless  to  aid.  It  is  no  wonder  that  the  sights  of  mutilation 
and   carnage  and   the   sounds  of  delirious   moaning,   shock   the   nerves   and 


<ippal  the  seises  of  those  who  have  been  spared  a  view  of  the  di'eadful  flow 
oi  human  bluod  and  merciless  mangling  of  human  form. 

No  more  horrible  place  can  be  imagined  than  the  battlefield  hospital,  with 
its  griiesome  pile  of  ami^ntated  feet  and  arms,  quivering,  mangled  ami 
bloody,  piled  without,  while  the  victims  within  are  groaning  under  anes- 
thetics or  wailing  with  pain  in  their  first  awakening  moments. 

SUCH  IS  WAR. 

But  such  is  war,  and  those  who  clamor  for  it  must  ^pect  nothing  else. 
Possibly  after  a  great  engagement  men  may  lie  wounded  for  two  or  three 
days,  or  even  more,  without  aid.  Such  cases  occur  after  every  great  batl*its 
^[en  fall  in  hidden  places  or  crawl  away  to  seek  shelter  from  missiles  or  to 
avoid  capture.  Sometimes  they  are  never  found.  Some  of  them  may  die  a 
lingering  death  of  pain  and  starvation.  Read  the  long  list  of  missing  after 
every  battle  and  drop  a  tear  and  utter  a  prayer.  Such  cases  will  occur  no 
matter  what  the  number  or  how  great  the  ability  of  the  surgeons  in  at- 
tendance. With  10,000  loving  comrades  searching  for  fallen  heroes  in  the 
thorny  thickets  surrounding  Santiago,  forty-two  men  j'et  are  missing.  Is 
it  a  wonder  that  with  such  diligent  search  a  few  might  be  found  who  had 
patiently  lingered  for  aid,  and  when  recovered,  is  it  not  a  case  for  rejoicing 
rather  than  for  wrath  and  criticism? 


NO  REASON  FOR  CRITICISM. 

If  men  were  carried  to  hospitals  denuded  of  clothing  the  mere  fact  should 
not  excite  criticism.  The  litter  bearers  perhaps  wore  but  a  .shirt,  trousers 
and  shoes.  If  because  some  wounded  soldier  gave  his  clothing  ftir  l<andag(\s 
to  saVe  the  life  of  a  comrade  in  greater  danger,  or  if  his  clollii ng  was  toi-n 
from  his  weakened  body  by  thieves,  should  he  be  denied  the  iniincdiate  bene- 
fits of  hospital  or  dressing  station,  or  should  he  wait  until  clothing  can  be 
sent  merely  to  satisfj'^  a  sentimentality? 

The  history  of  every  army  is  that  when  untrained  men  in  large  numbers 
are  gathered  into  large  camps  they  are  attacked  by  disettse;  and  no  war 
has  ever  been  waged  where  disease  was  not  vastly  more  deadly  than  the 
bullet. 

STRIKING  COMPARISONS. 

The  deaths  from  all  causes  in  our  army  from  May  1  to  date  were  2,910 
out  of  a  total  force  of  274,717,  or  a  percentage  of  1.059.  These  figures  when 
brought  in  comparison  with  the  losses  of  former  expeditions  to  the  West 
Indies,  show  how  insignificant  our  death  rate  has  been.  In  the  English 
expedition  to  the  West  Indies  the  land  forces  numbered  14,000.  The  losses 
were  1,790  oflicers  and  men  killed,  wounded  and  missing,  and  the  losses  by 
disease  were  about  50  per  cent  of  the  total  force. 

The  French  expedition  to  the  West  Indies  in  1802  Avas  perhaps  the  most 
disastrous  in  losses  from  disease.  The  French  army  loss  in  four  months 
from  disease  alone  was  15,207  men,  out  of  a  total  of  58,545,  a  mortality  of 
868  per  thousand.    Of  the  8,275  survivors  3,000  were  reported  unfit  for  duty. 

The  figures  as  to  the  loss  of  the  Spanish  from  disease  in  this  war  are  not 
obtainable  yet,  but  one  statement  alone  shows  how  greatly  the  Spanish 
army  sulTered.  Spain  has  carried  to  Cuba  during  the  present  war  135,000 
men.  There  now  remains  but  85,000,  and  thousands  of  these  are  incapaci- 
tated and  will  have  to  be  carried  oack  to  Spain  in  the  hospitals.  Comjiaied 
with  her  loss  from  disease,  the  losses  in  battle  by  the  Spanish  have  beju 
insignificant. 


OTHER  SOUTHEBN  CAMPAIGNS. 

The  flpath  rates  of  other  campaigns  in  southern  climates  bring  out  by 
comparison  our  small  losses.  The  loss  of  the  campaign  in  Algeria,  in  1848, 
was  77.81  per  1,000.  The  expedition  to  Tunis,  in  ISSl,  suffered  a  mortality 
of  01.30  per  1,000.  The  French  losses  in  Cochin  China  expedition  (18«l-62) 
was  100  men  per  1,000.  In  the  French  campaign  to  ^Madagascar  (1884-85) 
The  lo.ss  was  from  70  to  110  per  1,000.  The  English  campaign  in  Burmal: 
(1824-26)  had  a  loss  of  72  per  1,000. 

Jn  Napoleon's  campaign  to  IJussia,  his  loss  by  wounds  and  disease 
amounted  to  243,000  men  out  of  363,000.  In  Najjoleon's  campaign  of  1813, 
.■igainst  (jermany,  but  85.000  out  of  his  original  500.000  returned.  In  the 
;  urlvo-lju.ssian  War  of  ]S2>;-'.'9,  the  Hussiniis  lost  60,000  men,  mostly  by 
disease. 

CIVIL  WAR  RECORDS. 

In  the  first  year  of  the  War  of  the  Kebellion  the  sick  in  some  regiments 
inn  as  high  as  45  per  cent.  In  the  Army  of  the  Potomac  the  average  num- 
ber of  constant  sick  per  1,000  was  61;  in  the  Valley  of  the  ^Mississippi,  116, 
and  in  the  Department  of  West  Virginia,  162. 

Of  the  British  Army  in  time  of  peace,  61/2  per  cent  are  in  the  hospital. 
The  British  Army  in  the  Peninsular  AVar.  under  the  Duke  of  ^Vellington, 
had  21  per  cent  sick  in  hospital,  which  increased  at  one  time  to  33  per  cent. 

These  rates  were  exceeded  in  the  British  arm.y  of  the  Crimea,  where  the 
constant  sick  rate  was  26.6  per  cent;,  the  annual  rate  of  mortality  being  3 
per  ceut  in  battle  and  20.6  jier  cent  by  disease  and  accident. 

DEATHS  IN  FOREIGN  WARS. 

The  rate  of  mortality  from  all  causes  experienced  by  oiir  army  in  the 
war  with  Mexico  was  one-half  greater  than  it  was  in  the  War  of  the  Rebel- 
lion, and  of  the  British  troops  in  the  Peninsula  more  than  double,  and  in 
the  British  War  of  the  Crimea  more  than  three  times  that  e.xpeiienced  by 
the  Union  armies  in  the  \Var  of  the  Rebellion.  To  sum  up  from  extracts  of 
military'  statistics  of  the  United  States,  the  deaths  in  the  volunteer  forces  ol 
the  United  States  (.lune,  1861,  to  February,  1862,)  under  more  favorabU' 
conditions  than  those  experienced  by  the  volunteer  forces  of  our  present 
army,  were  from  Avounds  received  in  action  8.6  per  cent,  disease  and  acci- 
dent 44.6,  or  a  total  of  53.2.  The  annual  death  rate  in  both  Europe  and 
America  of  civilians  of  the  military  age  is  nearly  one-half  the  death  rate 
experienced  in  the  army  of  the  United  States  in  the  present  war,  from  all 
causes.  During  the  war  with  Mexico  the  mortality  was  118  per  thousand; 
14  from  wounds  received  in  action,  including  killed  in  battle,  and  104  from 
disease  and   accidents. 

During  the  Spanish  Peninsular  campaign  under  Wellington  (1811-1814) 
the  annual  death  rate  exjierienced  by  the  British  forces  was  165  per  thou- 
sand, of  Avhich  52  was  from  wounds  and  113  from  disease:  in  the  campaign 
of  the  allies  against  Rus.sia  in  the  Crimea  the  rate  experienced  in  hostilities 
for  the  period  of  the  first  nine  months,  not  inchiding  those  killed  in  battle, 
was  232  per  thousand,  30  being  from  wounds  and  202  from  disease. 

THIS  WAR'S  STATISTICS. 

Deaths  from  all  causes  between  'Slay  1  and  September  30,  inclusive,  as 
reported  to  the  Adjutant-General's  office  up  to  date  in  our  army  are:  Killed, 
23  officers  and  257  enlisted  men;  died  of  wounds.  4  officers;  died  of  disea.se, 
CO  officers  and  2,4^5  enlisted  men;   total,  107  oificers  and  2,803  enlisted  men. 


•28 

This  is  an  a,'^i;rcgate  of  2,910  out  of  a  total  force  of  274,717  offiens  am! 
men,  a  |K'iten1aj!,e  of  1.059,  or,  if  contiimed  for  an  entire  .year,  would  result 
in  a  loss  of  oiil\  4.41  ])er  cent,  or,  redueinf';'  to  a  basis  of  Jictnal  number  of 
('  nths  jjer  vear,  niaUes  a  totiil  loss  from  all  eanses  of  but  25.5  per  thonsand, 
lliiee  from  wounds  leeeived  in  action,  and  22.4  from  diseases  and  accidents, 
or  considerably  less  than  one-half  the  death  rate  for  the  same  period  of  the 
Civil  War. 

THE  DIVISION  HOSPITAL. 

The  division  hospital  became  the  subject  of  peculiar  and  vicious  attacks, 
either  from  ignorance  of  its  adaptability  to  a  state  of  war  or  from  jealousies 
arising-  in  regiments.  The  best  military  authorities  in  the  great  armies  of 
llie  world  unite  in  ])ronouneing  it  the  only  successful  method  of  caring-  for 
the  sick  of  a  great  army. 

lleg-iments  are  organized  to  move  and  to  fight.  If  they  are  hampered  hy 
tlieir  own  sick  in  their  own  hospitals,  when  marching  orders  are  received 
tliey  must  either  be  delayed  by  transporting  their  sick  to  some  other  hos- 
pitals or  be  burdened  with  tlieir  care  upon  the  march. 

The  presence,  too,  of  si,ck  and  wounded  men  so  near  noise  and  confusion 
of  a  regimental  camp  is  not  calculated  to  hasten  their  recovery,  and  the 
effect  of  their  presence  is  depressing  upon  the  able-bodied. 

VOLUNTEEB  SIGNAL   CORPS. 
Its  Admirable  Work  at  the  Front,  Though.  Belated  in  Starting. 

It  was  nearly  a  month  after  war  was  declared  before  authority  of  Con- 
fi-vess  was  secured  for  the  organization  of  the  Volunteer  Signal  Corps,  but 
in  the  short  period  of  time  intervening  before  the  oj^ening  of  tlie  campaign, 
lo  the  small  regular  establishment  of  sixty  officers  and  men  had  been 
added  a  volunteer  force  of  one  hundred  and  sixteen  ofllcers  and  one  thous- 
and enlisted  men,  well  organized  and  so  perfectly  e(|uip|)ed  that  in  every 
camp  there  had  been  established  a  complete  telephone  exchange  and  tele- 
graphic system;  and  at  Santiago  the  firing  line  was  so  well  supplied  with 
means  of  communication  that  it  took  but  twenty  minutes  for  a  message 
to  pass  from  the  rifie  pits  to  the  Executive  Mansioii  in  Washington. 

In  the  Philippines  they  constructed  and  maintained  telegraph  and  tele- 
phone lines  in  the  advance  trenches,  and  wherever  the  troops  were,  there 
was  the  Signal  Corps  also  present,  thoroughly  equipped  and  efficient. 

THE  ENGINEER  COBPS. 
Their  Work  in  Coast  Defense  and  During  Santiago  Campaign. 

The  diities  of  the  Engineer  Corps  of  the  United  States  Army  in  time  of 
war  may  be  considered  conveniently  under  two  heads:  First,  in  relation 
to  the  seacoast  defenses  of  the  coinitry;  second,  in  relation  to  the  operations 
of  a;  mies   in   the  field. 

I'nder  the  first  heading  the  duties  of  the  corps  consist  in  })]anning  and 
constructing  permanent  works  of  defense  for  the  protection  of  our  sea- 
coast  towns  and  cities,  and  in  the  planting  and  operation  of  submarine 
mines  blocking  the  entrance  thei-eto. 

Under  the  second  heading  their  duties  consist  as  staff  officers  in  planning, 
laying  out  and  constructing  temporary  fortifications,  hasty  intrenchments, 
roads,  bridges,  etc.,  and  in  making  reconnaissances  and  military  maps.  In 
this  latter  class  of  duties  engineer  troops  are  largely  employed  -whenever 
their  services  can  be  obtained. 


21 
DEFEIMSES  WEAK. 

At  the  outbreak  of  the  war  with  Spain  our  seacoast  defenses  wore  searctlv 
in  a  eondition  to  have  witlistood  a  well-directed  naval  attack  npon  our 
coasts.  Strenuous  efforts  were,  however,  made  to  mount  every  available 
f>un  in  such  batteries  as  were  then  in  progress,  and  to  provide  temporary 
batteries  for  old-style  armament  at  a  ivumber  of  places  otherwise  wholly 
defenseless.  In  an  exceedingly  short  time  a  large  number  of  guns,  new 
and  old,  were  in  readiness  for  service,  and  would  have  given  a  good  account 
had  any  hostile  attack  taken  place. 

TORPEDO  WORK. 

Deficiencj'  in  submarine  mininjr  material  threatened  to  render  siibmarine 
operations  futile  at  the  outbreaking  of  hostilities  but  by  tnking  advantage 
of  the  entire  manufacturing  resources  of  the  coiintry,  and  working  niglit 
and  day,  torpedo  defenses  were  placed  in  position  and  maintained  in  good 
order  throughout  the  entire  period  of.  active  hostilities  at  all  principal 
harbors. 

ENGINEERS  IN  SANTIAGO. 

In  the  Santiago  campaign  the  operations  of  the  engineer  troops  were, 
in  consequence  of  inadequate  numbers,  limited  to  the  more  technical  classes 
of  engineer  work,  such  as  road  repairs  and  constiuction,  repairs  to  rail- 
roads,  construction   of   landing  piers   and   military   reconnaissances. 

The  various  engineer  officers  assigned  to  duty  on  the  staffs  of  coriis  and 
division  commanders  in  the  different  cami>s  were  employed  in  laying  otit 
the  sites  of  camps,  providing  for  water  supplies  and  sanitation,  in  the 
instruction  of  troops  in  military  reconnaissances  and  map  making,  and  in 
the  construction  of  hasty  field  intrenchments. 

JOHN   S.  SIIRIVICR. 


SENATOR  CULLOM  ON  PROSPERITY 


loney,  Coinage  a-"  Prices 

JULY  1896,  AND  JANUARY,  1898 

•  «     « 

INCREASE  OF  WAGES 

AND 

REVIVAL  OF  INDUSTRIES 

imDeR  REPUBLICAN   POLICY 

•  «      « 
From  the  remarks  of 

Senator  SHELBY  M.  CULLOH 

of  Illinois 

In  the  Senate,  Friday.  January  a8,  1898 


FROiM  THE  REMARKS  OP 

Senator  SHELBY  M.  CULLOM, 

OF  ILLINOIS. 

In  the  Senate,  Friday,  January  28,  1898. 


Mr.  CULLOM  said: 

I  wish  now  to  submit  a  few  observations  not  directly  related  to  the 
pending  resolution.  I  have  gathered  some  statistics  to  which  I  wish  to  call 
the  attention  of  the  Senate.  I  hold  in  my  hand  the  official  figures  of  the 
Treasury  Department  showing  the  money  in  circulation  in  the  United  States 
July  1;  1896,  and  January  1,  1898. 


July  1, 1896, 


Jan.  1, 1898. 


Gold  coin   

Standard  silver  dollars 

Subsidiary  silver  

Gold  certificates  

Silver  certificates   

Treasury  notes   

United  States  notes  . . . 
Currency  certificates  . . 
National  bank  notes  . . 

Total    


$454,905 
52,116, 
60,204, 
42,198, 

330,657, 
95,245, 

224,249, 
31,890, 

215.168, 


0G4 
904 
451 
119 
191 
047 
868 
000 
122 


$547, 

61, 

65, 

36 

376, 

103, 

262, 

43, 

223, 


568,360 
491,073 
720,308 
557,689 
695,592 
443,936 
480,927 
315,000 
827,755 


$1,506,434,966 


?1,721,100,640 


Gftim  ia  eircul&Uon  in  eighteen  moBtlui,  1214,665.674. 


We  have  heard  much  about  the  distress  in  the  country  and  the  disposition 
on  the  part  of  the  Republican  party  and  its  Administration  to  neglect  the 
people  and  to  subserve  only  the  interests  of  the  boi:dholders,  and  I  submit 
whether  we  have  not  done  measurably  well  to  increase  the  circulation  of  the 
country  in  eighteen  monilis  since  the  nomination  of  the  candidates  for  the 
Prf^sidency  in  1896  $214,665.(374. 

The  addition  to  the  currency  of  the  country  by  coinage  of  the  United 
States  Mints  since  July  1,  1896,  isvas  follows: 


July  1,  1896,  to  January  1,  1897 539,129,305 

January  1.  1897,  to  January  1,  1898 96.041,882 

Total   $135,171,187 


MR.   BBYAN   ANSWEBED. 

I  call  the  attention  of  the  Senate  to  the  fact  that  Mr.  Bryan,  in  his 
Greensboro,  N.  C,  speech  in  1896,  asserted  that  Senator  Sherman  had  stated 
that  there  should  be  an  addition  of  $42, 000, 000  per  annum  to  the  circulating 
medium  of  the  country  to  keep  pace  with  the  growth  of  population,  and  he 
said:  "What  provision  has  the  Republican  party  made  for  the  supply  of 
the  money  that  we  need?  None  whatever."  Yet  it  will  be  observed  that 
the  amount  of  money  coined  by  the  mints  of  the  United  States  since  the 
beginning  of  the  campaign  of  1896  is  more  than  double  the  increase  named 
by  Senator  Sherman  and  approved  by  Mr.  Bryan  in  the  speech  referred  to 
above. 

I  call  thq  attention  of  the  Senate  to  another  table,  compiled  from  Brad- 
street's  Journal,  comparing  the  prices  of  articles  mentioned  on  January  1, 
139S,  v.ith  those  of  July  1,  1896,  the  nearest  obtainable  date  to  Mr.  Bryan's 
nomination.  They  show  that  in  practically  all  articles  which  farmers  pro- 
duce the  prices  now  received  are  much  higher  than  when  Mr.  Bryan  was 
nominated  and  when  his  party  insisted  that  improved  conditions  could  only 
come  through  the  free  aad  unlimited  coinage  of  silver;  also,  that  in  a  large 
proportion  of  the  articles  which  the  farmers  and  others  must  purchase  for 
daily  use  the  prices  have  fallen.  The  figures  relate  to  New  York  markets, 
except  where  otherwise  specified. 


UrCREASED  PBICE  OF  FARM  PRODUCTS. 


Article, 


Wheat,  No.  2,  red  vdnter per  bushel. 

Oats   : do. . . 

Barley  No.  2  (Milwaukee) do. . . 

Rye do . . . 

Flour,  winter per  barrel 

Beeves,  best  (Chicago) per  100  pounds. 

Sheep   (Chicago) 

Hogs  

Horses,  average  (Chicago) 

Beef  carcasses  (Chicago) per  pound. 

Hogs'  carcasses  (Chicago) do 

Mutton  carcasses  (Chicago) do. . . 

Eggs   per  dozen . 

Beef  per  barrel . 

Pork,  mess do. . . 

Bacon,  smoked  (Chicago) per  pound. 

Lard    do . . . 

Butter   do . . . 

Cheese    do 

Beans  per  bushel. 

Potatoes,  eastern per  barrel . 

Onions   > 

Wool,  Ohio  and  Pennsylvania  X  (Boston) 

Hides  

Flax , 


Hops Ml. .  .-iti): 

Tobacco,  medium  (Louisville) 

Cotton  seed  (Houston) , 

Lumber,  pine,  yellow 

Timber,  Eastern  spruce 

Timber,   hemlock   (Pennsylvania) 

Nails,  wire per  keg. 

Tin  plates   (Pittsburg) 

Cotton  sheeting   

Print  cloths  

Steel  rails  (Pittsburg) per  ton. 

Coal,  anthracite  

Coal,  bituminous  (Chicago) 

McConnellsville  coke  

Phosphate  rock  (South  Carolina) per  ton. 

Quinine per  ounce. 


July  1,1896. 

Jan.  1, 1898. 

?0.64% 

$0.98% 

.211/2 

.28y4 

.30 

.42 

.•37y2 

.55 

3.25 

4.S5 

4.65 

5.20 

4.00 

4.50 

1               3.40 

3.50 

65.00 

80.00 

1                 .05% 

.07 

.0378 

.05  3-5 

.05% 

.07% 

.12y2 

.25 

8.50 

10.50 

8.25 

8.75 

.04% 

.05 

.04  1-5 

.05 

.15 

.22 

.06% 

.08% 

1.15 

1.40 

.75 

2.00 

1.50 

2.50 

.16 

.27 

.17 

.20 

2.25 

3.25 

.07 

.16 

.11 

.i5y2 

.08 

.09  Va 

17.00 

15.75 

15.00 

14.50 

11.00 

11.00 

2.80 

1.75 

3.65 

2.85 

.04% 

.04% 

.021/2 

.0214 

28.00 

18.25 

4.25 

4.00 

2.75 

2.75 

2.00 

1.75 

5.25 

5.00 

.30 

.28 

I  present  the  table  because  our  distinguished  friend  the  Senator  from 
Colorado  was  talking  much  about  the  blistered  hand  of  the  farmer,  and  I 
desire  to  show  that  the  farmer  did  not  suffer  so  badly  last  year  as  com- 
pared with  previous  years. 

Mr.  GEAR?  In  1896,  during  the  campaign,  our  Democratic  friends  car- 
ried in  one  hand  the  Democratic  platform  and  in  the  other  Bradstreet's  and 


Dun's  reports,  showing  that  they  trusted  them  implicitly,  and  now  they  deny 
everything  therein  stated. 

Mr.  CULLOM.  As  a  matter  of  fact,  I  think  the  country  generally,  with- 
out reference  to  party  politics,  regards  Bradstreet's  report  as  entirely  im- 
partial. 

I  want  to  submit  a  statement  showing  the  resumption  of  manufacturing 
activities  and  increase  of  wages  since  the  enactment  of  the  DIngley  law, 
taken  from  Bradstreet's,  a  generally  recognized  journal  of  trade,  finance,  and 
public  economy: 

THE  BECOBD  Or  THE  MONTH  OF  AUGUST. 

Cleveland  (Ohio)  rolling  mills  resume  work,  employing  2,000  men. 

Wages  increased  16%  per  cent,  on  Louisiana  plantations  of  Leon  God- 
chau,  the  largest  sugar  producer  In  the  United  States. 

Wheaton  &  Co.'s  glass  works,  at  Millville,  N.  J,,  resume  work. 

Ensign  Car  and  Manufacturing  Company,  Huntington,  W.  Va.,  resume 
work. 

Cotton  mills  at  Lancaster,  Pa.,  resume  operations,  employing  1,000  hands. 

Edge  Tools  Works  at  Ogontz,  Pa.,  resume  work. 

Philadelphia  and  Reading  coal  and  iron  collieries,  near  Fottsville,  Pa., 
have  resumed. 

American  Watch  Company,  Waltham,  Mass.,  resumes  work. 

The  Crescent  tin-plate  mill,  Cleveland,  Ohio,  the  second  largest  mill  in 
the  United  States,  resumes  work. 

Rolling  mills  at  Lebanon,  Ohio,  resume  operations. 

Birmingham,  Ala.,  rolling  mills  resume  work,  employing  1,200  men. 

Gate  City,  Ala.,  rolling  mills  resume  work. 

American  Wire  Nail  Company,  St.  Louis,  increase  working  force  from  400 
to  1,000  men. 

Victor  Window  Glass  Company,  St.  Louis,  increases  its  plant  50  per  cent. 

American"  Tin  Plate  Company,  St.  Louis,  increases  its  working  force 
600  men. 

Reading,  Pa.,  Iron  works  resume,  giving  employment  to  700  men. 

Richardson  &  Boynton,  stove  works.  New  Jersey,  resume. 

Norwalk  Woolen  Mills,  Winnipauk,  Conn.,  resume  work,  notifying  em- 
ployees that  night  work  will  also  be  required. 

Birmingham,  Ala.,  rolling  mills  resume,  employing  700  men. 

Alabama  Pipe  Works,  at  Bessemer,  Ala.,  resume. 


■ast  Lake  Woolen  Mills,  Bridgeton,  N.  J.,  resume  work. 

Providence  Coal  Company  Mines,  Scranton,  Pa.,  resume  after  two  years' 
Idleness. 

Delaware  Iron  Works,  Newcastle,  Del.,  resume,  giving  employment  to 
500  hands. 

Wall  paper  factory  at  Newark,  Del.,  begins  operations. 

Advance  of  20  cents  per  ton  on  prices  paid  miners  in  Boyd  coal  mines. 
Nashville,  111. 

Pottery  manufacturers  of  New  Jersey  announce  advance  in  wages  averag- 
ing 12%  per  cent. 

Southern  Railway  increases  working  hours  in  its  shops  at  Birming- 
ham, Ala. 

INCBEABE  IN  WOBKINQ  TIME. 

Alabama  Qreat  Southern  Railroad  Company  increases  working  time  from 
five  hours  per  day  to  nine  hours,  affecting  1,000  men. 

Hutchinson,  Cole  &  Co.,  manufacturers  of  shirts,  Norwalk,  Conn,,  re- 
sume, giving  employment  to  500  operatives. 

United  States  Rubber  Company,  Millville,  Mass.,  increases  working  hours. 

Hetzel  &  Co.,  worsted  goods  manufacturers  at  Chester,  Pa.,  restore  wages 
of  1892,  affecting  several  hundred  hands. 

Mitchell-Lewis  Wago-n  Works,  Racine,  Wis.,  increases  time  to  twelve 
hours  per  day. 

Hartford,  Vt.,  Woolen  Company  restore  wages  of  1892  rates. 

Methuen,  Mass.,  cotton  mills,  employing  500  hands,  resume  work. 

Pottstown,  Pa.,  Iron  Mills  resume  work,  running  night  and  day. 

Whitaker  Iron  Company,  Wheeling,  W.  Va.,  resumes  work. 

Consul-General  Osborne  reports  that  leading  tin-plate  and  woolen  manu- 
facturers of  Great  Britain  are  preparing  to  transfer  their  manufactories  to 
the  United  States. 

Heskell  &  Barker  Car  Company,  Michigan  City,  Ind.,  increase  time  to 
twelve  hours,  affecting  work  of  1,500  men. 

Hillsboro,  N.  H.,  woolen  mills  start  up  on  full  time. 

Britton  Tin  Plate  Company,  Cleveland,  Ohio,  resumes  work. 

Union  Rolling  Mills,  Cleveland,  Ohio,  resume  work. 

All  railroad  shops  at  Birmingham,  Ala.,  increase  working  time  to  ten 
hours  per  day. 


8 

Washtngton  Steel  and  Tin  Plate  Company,  Washington,  Pa.,  resumes 
work  at  double  its  former  capacity. 

Pennsylvania  Railroad  locomotive  shops  at  Altoona,  Pa.,  increase  work- 
ing time  to  ten  hours  per  day. 

Girard  Union  Iron  and  Steel  Works,  Youngstown,  Ohio,  resumes  after  a 
long  shut-down. 

Read  Carpet  Company,  Bridgeport,  Conn.,  resumes  operations. 

National  Tube  Works,  McKeesport,  Pa.,  increase  wages  10  per  cent. 

Fall  River  (Mass.)  Iron  Works,  employing  2,700  men,  resume  work. 

American  Printing  Company,  Fall  River,  increases  working  hours  to 
full  time. 

Columbus,  Hocking  Valley  and  Toledo  Railroad  shops  increase  working 
hours  from  half  time  to  10  hours  per  day. 

Chicago,  Rock  Island  and  Pacific  Railroad  Company  adds  30  clerks  to  its 
force  in  auditing  office. 

Illinois  Steel  Company,  at  Chicago,  Milwaukee  and  Joliet,  resumes  work 
with  increased  force. 

SEPTEMBEB. 

Great  Falls  Manufacturing  Company,  at  Somerville,  N.  H.,  resume  work 
with  2,000  hands. 

Eight  puddle  furnaces  of  Ellis  and  Lessig  Steel  Company,  Pottstown,  Pa., 
resume  work. 

Glasgow,  Pa.,  Rolling  MiH  resumes  after  a  year's  idleness. 

Philadelphia  and  Reading  machine  shops  increase  working  hours  to 
full  time. 

Schuylkill,  Pa.,  Coal  Exchange  advances  miners'  wages  6  per  cent. 

Sharpsville,  Pa.,  iron  furnaces  resume  work. 

Falls  Manufacturing  Company,  Norwich  Conn.,  start  up  on  full  time. 

Sampson  ft  Williams's  woolen  mill,  Fairfield,  Me.,  increase  hours  to 
double  time. 

New  York  Herald  publishes  official  estimates  of  trades  union,  showing 
that  36,000  workmen  in  New  York  city  who  were  idle  in  1896  are  employed 
in  1897- 

Reports  from  20  large  Iron  plants  in  Mahoning  Valley,  Ohio,  Indicate 
business  70  per  cent,  better  than  one  year  ago. 

Corunna  Coal  Company,  Owosso,  Mich.,  advances  miners'  wages  5  cents 
per  ton. 


9 

Baltimore  and  Ohio  Railroad  Company  reports  the  demand  for  freight 
cars  in  excess  of  supply. 

Isaia  (Ohio)  Cordage  Mills,  idle  several  years,  resume  work  on  full  time. 

East  Lake  Woolen  Mills,  Bridgeton,  Pa.,  resume  work  after  three  years' 
Idleness. 
Wead  Paper  Mill,  Malone,  N.  Y,,  resumes  after  two  years'  idleness. 

Advance  in  wages  of  coal  miners  in  Ohio,  West  Virginia,  and  elsewhere, 
affecting  many  thousands  of  men, 

Cleveland  Rolling  Mill  announces  sale  of  1,000  tons  of  bar  steel  In  Bir- 
mingham, England;  and  Appleton,  Wis.,  paper  mills  annnounce  sale  of  2,000 
tons  of  print  paper  for  Japan. 

American  Wire  Nail  Works,  at  Madison,  Ind.,  resume  work. 

Lamp  chimney  factories  at  Madison,  Ind.,  employing  800  hands,  resume 
work. 

National  Rolling  Mills,  Pittsburg,  Pa.,  resume  work  in  puddling  depart- 
ment after  long  idleness. 

American  Steel  Casting  Company,  Sharon,  Pa.,  doubles  the  capacity  of  its 
manufacturing  establishments. 

Bellaire  (Ohio)  Steel  Company  resumes  work,  with  new  $500,000  blast 
furnace  in  operation. 

Tip-Top  Coke  Works,  Scottdale,  Pa.,  resumta  work  after  an  Idleness  of 
three  years. 

Reports  from  Pennsylvania  coke  fields  show  an  increase  of  886  ovens  in 
operation  within  twelve  days'  time. 

Monadnock  Cotton  Mills,  Claremont,  N.  H.,  increase  schedule  from  half 
time  to  full  time. 

Lindsay  &  McCutcheon's  Iron  Mills,  Allegheny,  Pa.,  advance  wages. 

Peninsular  Car  Works  resume  operations  in  all  departments,  increasing 
force  from  2,500  to  3,500  men. 

One  of  the  largest  soap  manufactories  in  England  announces  establish- 
ment of  a  large  factory  in  the  United  States  and  construction  of  a  village 
for  its  employees. 

OCTOBEB. 

Philadelphia  and  Reading  Company  increases  working  hours  in  its  loco- 
motive departments.  f  « 

Woolen  mill  operators  at  Chambersburg,  Pa.,  advance  wages. 


10 

Red  Stone  Coal,  Oil  and  Coke  Company  begins  work  in  its  coke  pl&iltf 
built  five  years  ago,  but  never  operated  in  full  until  now.  t) 

Brooke  Iron  Company,  Birdsboro,  Pa.,  increase  output  20  per  cent. 

Sharpsville,  Pa.,  furnace  v/orks  resume  after  more  than  one  year's  idle- 
ness. 

Reading,  Pa.,  Iron  and  Pipe  Company  Increases  hours  to  double  time. 

Cumberland  Valley  Railroad  shops  increase  to  ten  hours  per  day  for  the 
first  time  In  several  years. 

Seyfert  Rolling  Mills,  Naomi,  Pa.,  resume  work. 

Warren  Tube  Works,  Warren,  Ohio,  increase  wages  10  per  cent. 

Minnesota  Iron  Company  increases  wages  of  all  employees  10  per  cent. 

Large  Increase  in  blast  furnaces  In  operation  at  Birmingham,  Ala.,  re- 
ported. 

Hollldaysburg,  Pa.,  Iron  and  nail  works  resume  after  a  long  period  of 
idleness. 

Sharon,  Pa.,  iron  works  resume.  Including  thirty-six  puddling  furnaces; 
increase  of  employees,  25  per  cent,  over  1896. 

Coal  miners  at  Des  Moines,  Iowa,  give  a  10  per  cent.  Increase  of  wages. 

Dlsston  Saw  Works,  Tacony,  Pa,,  resume  work  on  full  time,  employing 
1,000  men,  after  four  years'  of  partial  idleness. 

Bellefonte,  Pa.,  glass  works  resume  operation. 

Lake  Erie,  Alliance  and  Southern  Railroad  advances  wages  10  per  cent, 
and  restores  employment  to  all  employees  laid  off  during  the  year. 

Reeves  Iron  Company,  Canal  Dover,  Ohio,  resumes  after  a  long  idleness. 

Wilhelm  Bicycle  Works,  Hamburg,  Pa.,  increases  wages  5  per  cent. 

Wages  of  cornice  and  skylight  workers  in  New  York  and  Brooklyn  ad- 
vanced. 

Old  Dominion  Iron  and  Nail  Company,  Richmond,  Va.,  resume  work  in 
horseshoe  rolling  plant. 

Wages  of  employees  in  Howard-Harrison  Pipe  Works,  Bessemer,  Pa., 
advanced. 

East  Lake  Woolen  Mills,  Bridgeton,  N.  J.,  resume  work. 

Work  resumed  In  thirty-four  furnaces  of  Porkhouse  Iron  Mills,  Alle- 
gheny, Pa. 

Naumkeag  Mills,  Salem,  Mass.,  increase  time  from  four  days  per  week 
to  full  time. 


11 

mON  MIIiLS  BESXJlOiE. 

Several  Iron  mills  at  Sharon,  Pa.,  announce  resumption  after  long  Idle- 
ness. 

New  York  beet-sugar  factory,  Rome,  N.  Y.,  announces  its  first  production 
of  beet  sugar. 

Pennsylvania  Railroad  Company  places  orders  for  40,000  tons  of  steel 
rails  to  be  delivered  before  January  1,  1898. 

Postal  autliorities  at  Washington  announce  increase  of  7  per  cent,  in  busi- 
ness of  post  offices  in  thirty  largest  cities,  comparing  September,  1897,  with 
same  month  of  1896. 

Olneyville,  R.  L,  woolen  mills  restore  1892  wages,  an  average  of  over  20 
per  cent,  increase. 

Wages  advanced  In  the  Riverside,  Weybosset,  Manton  and  Lymansville, 
R.  I.,  mills. 

Lawrence  Carpet  Mills,  Philadelphia,  Pa.,  resume  operations  on  full  time, 
with  increased  machinery. 

Thomas  Iron  Company,  Allentown,  Pa.,  resumes  operations. 

Frankstown  Rolling  Mill,  Pittsburg,  resumes  work,  employing  1,000  men. 

New  steel  manufacturing  plant  announced  by  Standard  Steel  Company 
at  Pittsburg,  to  employ  1,000  men. 

Columbia  Steel  Mill,  Uniontown,  Pa.,  announces  resumption  after  a  long 
period  of  idleness. 

NOVEMBER. 

Basic  steel  plant  In  operation  at  Middlesboro,  Ky.,  for  first  time  in  several 
years. 

Vale  Mills,  Nashua,  N.  H.,  resumed  work  after  long  idleness. 

Tremont  Worsted  Mills,  Methuen,  Mass.,  increased  wages  from  10  to  20 
per  cent. 

Carpenter  Steel  Works,  Reading,  Pa.,  Increased  schedule  to  double  time. 

Andrew  Bros.,  blast  furnace,  Youngstown,  Ohio,  advances  wages  10  per 
cent. 

Bachman  &  Co.,  Philadelphia,  advance  weavers'  wages  5  per  cent ,  affect- 
ing earnings  of  1,000  persons. 

Mahoning,  Pa.,  blast  furnaces  advance  wages  10  per  cent.,  affecting  3,000 
employees. 


12 

Allegheny  county.  Pa.,  reports  every  blast  furnace  within  Its  borders  in 
operation. 

Berkshire,  Mass.,  glass  works  resume  operation. 

Bethlehem,  Pa.,  steel  mills  resume  work,  employing  1,000  men. 

Lehigh  Zinc  Company,  Bethlehem,  Pa.,  announces  large  additions  in  its 
manufacturing  establishment  and  increase  of  employees. 

Wages  Increased  from  10  to  20  per  cent,  at  Alice  Furnace,  Sharon,  Pa. 

Laconia,  N.  H.,  car  works  resume  operations,  employing  several  hun- 
dred men. 

Wages  of  2,000  employees  of  Wheeling,  W.  Va.,  Iron  and  Steel  Company 
advanced  10  per  cent. 

East  Liverpool,  Ohio,  potteries  announce  that  their  pay  rolls  have  ddibled 
over  those  of  August,  most  of  the  establishments  running  double  time. 

WAGES   ADVANCE   TEN   PER   CENT. 

Wages  advanced  10  per  cent,  in  Eddy  Woolen  Mills,  Fall  River,  Mass., 
affecting  several  hundred  hands. 

Moore  &  Sinnott  Distillery,  Gibsontown,  Pa.,  resumes  after  two  years' 
idleness. 

Shamokin,  Pa.,  coal  mine  operators  announce  their  pay  roll  the  largest  in 
several  years. 

Twenty  per  cent,  advance  in  wages  announced  by  Bessemer,  Carbon,  and 
other  limestone  companies  of  Mahoning  Valley. 

Ten  per  cent,  increase  In  wages  announced  by  Chapin  Mining  Company, 
Pewable  Mining  Company,  the  Antoine  Ore  Company,  Aragon  Ore  Company, 
and  Pennsylvania  Iron  Mining  Company,  of  Iron  Mountain,  Mich.,  affecting 
over  2,000  men. 

British  silk  manufacturers,  A.  W.  Pierson  &  Co.,  of  Southfort,  Eng- 
land, establish  silk  works  at  Passaic,  N.  J.,  to  employ  large  number  of  hands. 

Wages  of  15,000  employees  of  Missouri  Pacific  Railway  advanced  10  per 
cent. 

Ten  per  cent,  advance  in  wages  of  employees  of  New  York  Knife  Com- 
pany, Walden.  N.  Y. 

DECEMBEB. 

Fifteen  per  cent,  advance  iu  wages  at  Wyoming  Lace  Mills,  Willcoa- 
barre,  Pa. 


IS 

Ten  per  cent,  advance  in  wages  in  Jones  &  Laugblin's  iron  mills,  Pitts- 
burg. 

President  Garland,  of  the  Amalgamated  Association  of  Iron  and  Steel 
Workers,  reports  tin-plate  mills  generally  filled  "with  orders  and  steady  work 
In  prospect. 

Work  resumed  at  puddle  and  nall-plate  mills  of  Chesapeake  WorKs,  Har- 
risburg,  Pa. 

Work  resumed  in  McKee  Bros.'  chimney  shops,  Jeannette,  Pa. 

Myers  Company  works,  Beaver  Falls,  Pa.,  increase  schedule  to  full  run- 
ning time. 

Miners  wages  advanced  20  per  cent,  at  Creede,  Colo. 

Lackawanna  Company  resumes  work  in  Avondale  colliery,  producing  700 
tons  of  coal  per  day,  after  a  long  shut-down. 

Northern  Illinois  coal  miners  resume  work. 

Glass  factories  controlled  by  the  American  Glass  Company,  resume  work 
with  an  advance  of  12  per  cent,  in  wages. 

Ten  per  cent,  increase  in  wages  given  employees  in  wire  nail  works  at 
Newcastle,  Ind. 

Wages  advanced  15  per  cent,  in  mines  of  Coronna  Coal  Company  and 
Virginia  and  Alabama  Coal  Company,  Alabama. 

Resumption  of  work  in  window-glass  factories,  giving  employment  to 
15,000  men,  with  advanced  wages  in  most  cases. 

JANUARY,    1898. 

Advance  of  12%  per  cent,  in  wages  of  pottery  establishments  in  New 
.Jersey  and  other  Eastern  States. 

Paxton  furnaces,  Harrisburg,  Pa.,  resume  work. 

Flint-glass  factories  in  Ohio  Valley  and  elsewhere  resume  work  on  full 
time. 

Saxony  Knitting  Mill,  Little  Falls,  N.  Y.,  increases  schedule  to  full  time. 

Five  per  cent,  increase  given  employees  of  Humaston  &  Beckley  Cutlery 
Manufacturing  Company,  New  Britain,  Conn. 

St.  Paul  railway  shops  at  Milwaukee  announce  large  increase  in  em- 
ployees and  work,  with  greater  demand  than  at  any  time  since  1S92. 

Pennsylvania  Railroad  Company  ordered  100,000  tons  of  new  steel  rails. 

Illinois  Steel  Company,  South  Chicago,  announces  increase  in  running 
hours. 


14 

Increase  of  wages  by  Metropolitan  Iron  and  Land  Company,  Ironwood, 
Mich.,  affecting  1,000  employees. 

Illinois  Steel  Company  announces  extension  of  its  works,  which  v,  111  add 
1,000  men  to  its  pay  roll. 

Pennsylvania  coke  manufacturers  report  the  1897  output  of  coke  at 
6,915,054  tons,  valued  at  $11,409,835. 

Mr.  BACON.  Does  the  table  which  the  Senator  from  Illinois  has  pre- 
sented take  into  account  the  New  England  cotton  factories? 

Mr.  CULLOM.  I  do  not  know  whether  it  does  or  not.  I  think  it  does,  and 
that  some  of  the  Southern  factories  are  mentioned  in  it  as  well.  There  are  a 
great  number  of  the  factories  named  where  work  has  begun  in  which,  under 
the  former  Administration,  nothing  was  being  done  whatever,  or  very  little. 

Mr.  BACON.  The  former  Administration  maintained  the  same  financial 
policy  as  the  present  one. 

Mr.  GALLINGER.  If  the  Senator  from  Illinois  will  permit  me,  in  answer 
to  the  observation  of  the  Senator  from  Georgia,  I  will  say  that  the  great 
Amoskeag  corporation  in  Manchester,  N.  H.,  employing  10,000  people,  was  idle 
a  considerable  part  of  last  summer,  and  is  now  running  at  a  less  rate  of 
wages  than  was  paid  two  or  three  years  ago,  but  the  operatives  are  better  off, 
they  think,  to  get  reasonably  good  wages  rather  than  to  be  entirely  idle,  as 
they  were  for  a  considerable  time  under  the  Wilson  Act. 

HTJITDBEDS   OF   ESTABLISHMENTS   KESUMING   WORK. 

Mr.  CULLOM.  One  would  suppose  from  listening  to  the  debate  of  the 
last  two  or  three  days  that  there  had  been  no  improvement  In  ^he  condition 
of  affairs  within  the  last  year,  while  the  list  I  hare  submitted  mentions  hun- 
dreds of  establishments  which  have  resumed  work  and  are  now  doins  business 
and  have  been  doing  business  since  the  Republican  party  came  into  power. 

I  desire  to  insert  a  brief  paragraph  fiom  the  speech  of  the  honorable 
Secretary  of  the  Treasury  at  Philadelphia  a  few  nights  ago  in  relation  to 
wages: 

"This  brings  the  question  to  the  test  of  fact.  It  has  been  asserted  upon 
authority,  and  I  believe  It  to  be  approxim.ately  true,  that  within  the  period 
1872-1891  prices  have  fallen  an  average  of  27%  per  cent.  I  am  at  liberty, 
therefore,  to  adopt  the  same  authority  as  to  the  course  of  wages.  It  appears 
from  the  exhaustive  figures  of  the  Commissioner  of  Labor,  the  authority 
cited,  that  within  the  period  1872-1891  wages  have  increased  an  average  of 


-J5 

10  per  cent.  Taking  the  greater  povrer  of  wages  to  command  things  by  reason 
of  their  lower  price,  the  economic  advantage  gained  by  labor  it  still  further 
emphasized, 

"In  1872  1100  in  gold  wojild  buy  a  certain  amount  of  living;  in  1891,  prices 
having  fallen,  $100  would  buy  27%  per  cent  more  than  it  did  in  1872,  and 
wages  having  increased  10  per  cent,  in  the  meantime,  the  same  work  which 
was  paid  |100  in  1872  received  fllO  in  1891.  From  the  double  advantage  of 
decreased  prices  and  increased  wages  it  follows  that  in  1891  the  same  labor 
would  purchase  51.7  per  cent,  more  of  living  than  it  did  in  1872.  Let  ua 
apply  these  advantages  by  example. 

"In  1891  the  labor  that  supported  fifteen  people  supported  only  ten  in 
1872.  In  1891,  from  the  same  labor  as  in  1872,  a  man  living  upon  the  same 
scale  would  have  over  one-third  of  his  wages  to  put  in  bank  or  better  provide 
for  his  family, 

"I  am  further  borne  out  in  this  demonstration  by  the  statistics  of  savings 
banks  covering  the  period  under  consideration.  Since  1871  the  number  of 
depositors  in  such  institutions  has  Increased  from  less  than  2,000,000  to  more 
than  5,000,000,  and  the  average  per  capita  saving  in  the  United  States  has 
Increased  86  per  cent." 

I  also  submit  a  statement  in  relation  to  exports  in  1897: 

HEAVY  EXPORTS  DURING   1897. 

"A  comparison  of  the  exports  of  domestic  articles  during  the  year  1897 
and  the  preceding  year  of  1896  shows  that  notwithstanding  the  enactment  of 
a  protective  tariiS  law  our  productions  have  gone  abroad  in  even  greater 
quantities  than  under  a  low  tarifE  measure.  In  the  first  eleven  months  of 
1897  the  value  of  th^  exports  of  agricultural  implements  was  $5,149,0(^0  against 
$4,527,000  for  the  first  eleven  months  of  1896.  The  value  of  cattle  exported  in 
the  first  eleven  months  of  1897  was  $35,498,000  against  $33,621,000  in  1896. 
The  value  of  the  horses  exported  in  these  eleven  months  of  1897  was  $5,170,000 
against  $3,282,000  in  1896. 

"The  value  of  sheep  exported  in  the  first  eleven  months  of  1897  v/as 
$1,259,000  against  $1,891,000  in  1896,  showing  a  falling  off  in  the  exportation 
of  these  animals.  This,  however,  is  more  than  satisfactorily  accounted  for 
by  the  fact  that  the  sheep  raisers  of  the  country  are  building  up  their  flocks, 
and  many  farmers  are  branching  out  into  sheep  raising  and  wool  growing. 
Of  bsuley,  the  exports  Increased  from  $5,555,000  in  1896  to  $6,535,000  in  the 


16 

eleven  months  mentioned  in  1897.  Some  very  gratiCj'ing  figures  are  found  in 
the  exportation  of  corn,  v/hich  in  1897  amounted  to  $53,441,000  against  $39.- 
382,000  in  1S96,  and  corn  meal  $1,209,000  in  1897  against  $551,000  in  1896. 

"The  exportation  of  oats  has  increased  from  $6,796,000  in  1896  to  $11,852,- 
000  in  1897;  oatmeal,  from  $789,000  to  $1,025,000;  rye,  from  $2,038,000  to 
$4,362,000.  Of  course  in  wheat  the  contrast  is  marked,  the  value  of  the  exports 
of  the  first  eleven  months  of  1896  being  $51,356,000,  against  $87,412,000  in  1897. 
The  value  of  the  total  exportations  of  breadstuffs  was  $160,000,000  the  first 
eleven  months  of  1896,  against  $222,000,000  in  the  corresponding  period  of  1897. 

"The  exports  of  carriages,  cars,  etc.,  have  risen  from  $5,924,000  in  the 
first  eleven  months  of  1896  to  $9,393,000  in  the  corresponding  period  of  1897. 
Of  hog  products  the  exports  in  1896  were  $27,927,000  against  $35,566,000  in 
1897;  of  butter,  the  exports  of  1896  were  $3,578,000,. against  $4,412,000  in  1897; 
of  cheese,  ?3,512,000,  against  $5,212,000  in  1897;  of  vegetables,  $1,678,000, 
against  $2,231,000  in  1897;  of  wood  manufactures,  $7,413,000,  against  $3,017,000, 
and  of  lumber,  $10,548,000,  against  $12,537,000." 


«« MAINTAIN  THE  NATIONAL  HONOR" 


THE 
TELLER  RESOLUTION 


PROM  THE  REMARKS  OF 

Hon.  NELSON  DINGLEY,  of  Maine 
Hon.  ALBERT  J.  HOPKINS,  of  Illinois 
Hon.  THOS.  H.  TONGUE,  of  Oregon 
Hon.  D.  B.  HENDERSON,  of  Iowa 
Hon.  CHAS.  H.  GROSVENOR,  of  Ohio 
Hon.  J.  P.  DOLLIVER,  of  Iowa 


IN  THE  HOUSE  OF  REPRESENTATIVES 
January  31,  1898 


THE  TELLER  RESOLITION 

IN  THE  HOUSE  OF  REPRESENTATIVES, 
January  31,  1898 


MR.    DINGLEY    OH    THE    TELLEB    KESOLUTION. 

The  House  having  under  consideration  Senate  concurrent  (Teller)  resolu- 
tion No.  22,  relating  to  the  payment  of  the  bonded  obligations  of  the  Grov- 
ernment — 

Mr.  DINGLEY  said:  ' 

Mr.  Speaker:  The  pending  Senate  resolution  is  net  a  joint  resolution 
which,  when  duly  enacted  and  approved,  would  l;ave  the  force  of  law.  It  is 
simply  a  concurrent  resolution  which  does  not  require  the  approval  of  the 
Executive,  and  which,  even  if  adopted  also  by  th«  House,  would  be  only  the 
expression  of  the  opinion  of  the  two  Houses  of  Congress. 

'  Its  importance,  therefore,  lies  in  the  fact  that,  if  concurred  in  by  the 
House,  it  would  legitimately  and  inevitably  be  regarded,  not  only  here  but 
by  the  world,  as  the  expression  of  the  deliberate  judgment  of  a  majority  of 
the  American  people  as  to  their  standard  of  honor  and  good  faith  in  the  dis- 
charge not  only  of  national  but  also  of  private  obligations. 

At  the  outset  It  is  important  to  strip  from  the  issue  presented  by  the 
pending  resolution  all  the  subterfuges  which  have  been  resorted  to  to  conceal 
or  cloud  its  real  character  under  the  conditions  which  exist  to-day  and  to 
obtain  a  clear  understanding  of  its  meaning  and  significance. 

THBOWING  DTJST  IN  THE  EYES  OF  OXTR  PEOPLE. 

Let  it  be  borne  in  mind,  then,  that  this  resolution  is  not  presented  for 
the  purpose  of  securing  an  expression  by  Congress  as  to  the  power  or  legal 
rights  of  the  Government  either  as  to  the  payment  of  its  obligations  or  as 
to  what  may  be  declared  legal  tender.  It  is  throwing  dust  in  ttie  eyes  of  our 
own  people  and  of  the  world  to  assume  that  we  are  determining  a  question 
of  power  or  even  of  technical  legal  right.  No  one  denies  that  this  or  any 
other  nation  has  the  power  to  pay  in  full  or  in  part  or  none  of  its  obligations, 
in  gold,  or  silver,  or  paper,  or  copper,  according  to  its  pleasure.  Payment 
can  not  be  enforced  against  a  sovereign  nation.  Its  obligations  are  measured 
by  its  own  sense  of  honor  and  good  faith. 

But  even  if  this  sense  of  honor  is  at  any  time  blunted,  as  was  Shyloclc's, 
by  dwelling  on  a  narrow  view  of  the  letter  rather  than  the  spirit  of  the  obll- 


gation,  the  intelligent  selfishness  of  a  nation,  which  Is  to  live  not  simply  for 
a  generation  but  for  centuries,  ought  to  lead  it — and  wherever  a  nation  is 
wisely  governed,  does  lead  it — to  so  scrupulously  maintain  its  pledges  In 
both  letter  and  spirit  as  to  preserve  its  credit  untarnished,  and  thereby  not 
only  make  it  possible  to  borrow  at  the  lowest  rate  of  interest,  but  also  to 
make  it  easy  to  obtain  loans  in  exigencies,  which  are  sure,  sooner  or  later, 
to  come  to  every  nation.  A  nation's  honor  and  credit,  I  may  say  to  gentle- 
men on  the  other  side  who  applauded  so  jubilantly  when  the  pending  resolu- 
tion was  brought  into  this  Hall,  are  among  its  most  priceless  possessions — 
aye,  its  title  deed  to  permanence  and  prosperity. 

Gentlemen  on  the  other  side,  who  so  exultantly  applauded  under  the  im- 
pression that  they  were  hitting  the  hated  holder  of  bonds  issued  by  the  Gov- 
ernment to  fund  the  debt  incurred  in  defending  and  saving  the  Union  in  its 
years  of  adversity  and  peril,  were,  in  fact,  hitting  and  discrediting  the  credit 
of  the  nation,  which  stands  for  every  citizen,  high  or  low,  rich  or  poor,  and 
whose  flag  is  the  emblem  of  freedom  and  civilization. 

Mr.  Speaker,  the  sting  and  dishonor  of  the  pending  resolution  is  in  its 
tail,  and  that  sting,  well-nigh  harmless  twenty  years  ago  under  conditions 
then  existing,  is  made  deadly  by  the  changed  conditions  of  to-day. 

DEADLY  TAIL  OF  THE  RESOLUTION. 

All  that  precedes  this  deadly  tail,  declaring  what  the  Government  has 
the  power  to  do,  if  it  regards  it  just  and  wise,  is  denied  by  no  one;  and  hence 
this  attempt  to  secure  its  labored  assertion,  or  rather  reassertion,  is  an  ab- 
surdity which  obtains  importance  only  because  those  who  are  pressing  this 
assertion  of  the  existence  of  the  power  intend  that  its  reassertion  shall  be 
construed  to  mean  that  the  two  Houses  of  Congress  believe  it  just  and  wise, 
under  existing  conditions,  to  exercise  that  power,  to  wit,  to  authorize  the 
free  and  unlimited  coinage,  by  this  country  alone,  of  silver  at  the  ratio  of 
16  to  1,  and  to  pay  the  outstanding  bonds  of  the  Government  in  the  dollars 
so  coined. 

The  deadly  tail  of  this  resolution  reads  as  follows: 

That  to  restore  to  its  coinage  such  silver  coins  as  a  iegal  tender  in  the  payment  of  said  bonds- 
Meaning  practically  all  the  bonds  of  the  United  States  now  outstanding — 
is  not  in  yiolation  of  the  public  faith  nor  in  derogation  of  the  rights  of  the  public  creditor. 

This,  it  will  be  observed,  is  not  an  assertion  of  the  power,  or  even  the 
technical  legal  right,  of  the  Government,  but  a  proposed  declaration  by  the 
two  Houses  of  Congress  of  the  standard  of  honor  and  good  faith  which  the 
American  people  are  prepared  under  existing  conditions  to  proclaim  to  the 
irorid. 


4 

OBJECT   OF   ITS   MOVERS. 

The  declarations  of  the  movers  and  supporters  of  this  resolution  in  the 
Senate  during  its  recent  consideration  in  that  body  as  to  its  purpose  and 
intent  will  throw  a  flood  of  light  on  this  point,  if,  indeed,  anything  more  is 
needed  than  a  reference  to  existing  conditions  to  understand  exactly  what  is 
meant  now  by  the  phrase  "to  restore  to  its  coinage  such  silver  coins" — a 
phrase  vrhich  in  1878  was  with  good  reason  interpreted  by  many  who  sup- 
ported a  similar  resolution  to  mean  something  vitally  different  from  what 
it  must  mean  now. 

.  The  Senator  who  introduced  the  resolution  into  the  Senate  at  this  ses- 
sion furnished  the  country  with  an  authoritative  interpretation  of  its  moan- 
ing.   I  read  from  the  Record  the  following  co'loquy: 

FREE  COINAGE  PURPOSE  ADMITTED. 

Mr.  Spooner.  I  ask  the  Senater  whether  he  inean8  to  be  understood  by  the  resolution  as  saying 
that  it  will  be  in  consonance  with  public  faith  for  the  Government  to  open  the  mints  for  the  free  and 
unlimited  coinage  of  silver  at  a  ratio  of  16  to  1  and  pay  in  those  dollars  a«  a  legal  tender  the  principal 
of  the  bonds? 

Mb.  Tbllek.  The  Government  absolutely  has  a  right  under  the  law,  and  a  moral  right  (hat  can 
not  be  queitioned,  in  my  judgment. 

Mr.  Spooner.    Is  not  that  r.hat  this  resolution  is  intended  to  mean? 

Mr.  Teller.    That  is  what  I  intended  it  to  mean. 

This  frank  statement  makes  so  clear  the  meaning  and  intent  of  this 
resolution  at  the  present  time  that  I  need  not  cite  similar  statements  by 
other  supporters  of  the  resolution. 

It  is  well  known,  as  I  have  already  inttinated,  that  In  1S78,  when  the 
original  Matthews  resolution  was  adopted  by  both  Houses  of  Congre:>3,  the 
phrase  "to  restore  to  its  coinage  such  silver  coins,"  etc.,  was  understood 
by  many  who  then  supported  the  resolution  (but  now  oppose  it)  to  refer 
to  the  standard  silver  dollars  which  were  proposed  by  the  Allison-Bland 
bill,  that  became  a  law  within  two  weeks  thereafter,  that  the  Government 
should  coin  on  its  own  account  in  limited  volume  and  maintain  at  a  parity 
with  gold.  Such  full  legal-tender  silver  dollars,  kept  by  the  Government  as 
good  as  gold  by  limitation  of  the  coinage  and  by  indirect  redemption  in 
payment  for  duties  and  taxes,  have  since  been  coined  to  the  extent  of 
four  hundred  and  fifty-six  millions,  up  to  January  1,  all  but  seventeen  mil- 
lions of  which  are  in  circulation  either  in  the  form  of  coins  or  certiflcates 
of  deposit- 
Even  the  seventeen  millions  owned  by  the  Government — and  this  small 
amount  is  all  that  the  Treasury  could  use  in  redemption  of  bonds — are  doing 
the  same  service  in  the  Treasury  as  other  forms  of  money,  including  gold, 
and  thus  practically  aiding  even  in  the  payment  of  bonds;  and  all  because 


5 

the  policy  of  the  Government,  since  formulated  into  law,  has  been  for 
twenty  years  to  keep  all  its  currency,  whether  silver  or  paper,  as  good  as 
gold. 

$30,000,000    OF    BONDS    PAID    IN    GREENBACKS     OB,    CtmRENCY 

CHECKS. 

Let  me  repeat.  This  resolution  cannot  have  any  practical  reference  to 
the  standard  silver  dollars  coined  on  account  of  the  Government  since  1878, 
because  the  small  number  of  these  coins  which  are  owned  by  the  Govern- 
ment, as  well  as  the  large  number  in  circulation  either  as  coins  or  in  the 
form  of  certificates  of  deposit,  are  kept  as  good  as  gold  by  the  Govern- 
ment, and  are  practically  used  for  all  purposes  in  such  a  way  as  will  best 
secure  this  parity. 

So  long  as  silver  dollars  and  greenbacks  are  kept  as  good  as  gold  and 
confidence  is  maintained  that  such  parity  will  not  be  disturbed,  it  is 
found  by  experience  that  even  bondholders  accept  both  without  objection. 
Indeed,  within  the  past  six  weeks  the  Government  has  paid  nearly  thirty 
millions  of  matured  bonds  either  in  greenbacks  or  currency  checks.  It  is 
only  when  confidence  is  weakened  by  such  propositions  as  that  covered 
by  the  pending  resolution  that  public  creditors  demand  gold.  In  other 
words,  such  schemes  as  this  defeat  the  very  end  which  the  proposers  profess 
to  be  seeking. 

When  gentlemen  on  the  other  side  point  to  the  standard  silver  dollars 
coined  in  limited  volume  on  account  of  the  Government  as  "honest  dollars," 
as  they  certainly  are,  so  long  as  the  Government  maintains  the  value  which 
they  have  possessed  for  twenty  years,  and  then  ask  the  country  to  infer  that 
standard  silver  dollars  minted  under  free  and  unlimited  coinage  by  this 
country  alone  at  the  ratio  of  16  to  1  of  gold,  at  a  time  when  the  commercial 
ratio  is  33  to  1,  will  be  equally  good,  they  must  expect  that  candid  investi- 
gators of  monetary  facts  will  listen  v/ith  astonishment,  however  sincere  they 
may  regard  those  who  entertain  such  a  belief. 

THE  200  CENT  DOELAR  THEORY. 

Indeed,  Jlr.  Speaker,  the  frequent  declarations  of  many  of  the  advocates 
of  15  to  1  unlimited  silver  that  we  have  had  since  1879,  and  now  have  a  200- 
cents  dollar,  and  that  an  "honest  dollar"  is  one  which  has  only  half  the 
purchasing  power,  are  a  practical  admission  on  their  part  that  what  they 
expect  to  oLtain  by  their  policy,  if  they  can  secure  its  adoption,  is  the  de- 
preciation of  the  dollar — a  depreciation  of  one-half  on  the  basis  of  their  own 
assertions— and  then  the  usfe  of  such  a  depreciated  dollar  to  pay  not  only 
Government  but  also  private  obligations. 


It  1b  Bometlmes  loosely  asserted  that  a  depreciation  of  our  dollar  one-half 
is  lustifted  by  an  alleged  appreciation  of  gold  since  we  got  back  to  a  specie 
basis  in  1879.  As  a  matter  of  fact,  this  assertion  is  not  supported  by  ahy 
fact.  The  only  evidence  that  has  ever  been  offered  for  such  an  assumption 
is  the  decline  of  prices.  Even  if  it  be  conceded  that  a  fall  of  prices  neces- 
sarily shows  a  rise  in  the  value  of  the  dollar  measure — a  concession  inad- 
missible in  viev/  of  the  well-recognized  fact  that  as  to  most  articles  there 
is  and  has  been  for  a  long  time  a  continuous  reduction  in  cost  of  production 
by  the  Increased  use  of  labor-saving  devices  and  economies — let  it  be  borne 
,  in  mind  that  according  to  the  tables  of  Commissioner  Wright,  as  presented 
in  the  report  of  the  Senate  Committee  on  Finance,  the  decline  of  average 
gold  prices  in  the  United  States  from  1879  to  1891  was  only  5  per  cent.,  and 
even  from  1870  to  1879  only  5  per  cent.,  while  from  1870  to  1891  wages  rose 
20  per  cent.  Since  1891  the  unexampled  increase  of  gold  production  makes  it 
improbable  that  gold  can  have  increased  in  value.  The  great  fall  of  prices 
between  1893  and  1897  has  been  brought  about  in  large  part  by  precisely 
the  same  causes  that  produced  a  fall  of  prices  to  the  extent  of  12  per  cent. 

in  1857-58. 

THE   MORAL  VIEW   OF   IT. 

This  brings  me,  Mr.  Speaker  to  the  consideration  of  the  vital  question  as 
to  whether  "the  Government  has  the  moral  right" — in  other  words,  whether 
it  would  be  an  act  which  the  moral  sense  of  the  world  would  regard  as  in 
accordance  with  honor  and  good  faith — for  the  United  States  to  pay  its  out- 
standing bonded  indebtedness  in  dollars  of  so  materially  less  value  than  the 
dollar  which  has  been  the  practical  standard  of  value  since  1834,  barring 
the  war  and  reconstruction  period,  and  which  has  been  the  legal  and  practical 
standard  of  value  since  1879,  and  the  dollar  in  which  our  bonded  indebtedness 
has  been  paid  thus  far — paid  by  every  Administration  from  Lincoln  to  Mc- 
Kinley — to  wit,  the  dollar  equal  in  value  to  25.8  grains  of  standard  gold. 

It  is  urged  that  the  original  act  authorizing  the  issue  of  all  existing 
bonds  for  the  purpose  of  refunding  the  debt,  which  was  passed  in  1870,  pro- 
vided for  the  payment  of  coin  of  the  then  existing  standard,  and  that  as  the 
law  then  stood  a  coin  dollar  might  be  a  gold  dollar  of  25.8  grains  of  standard 
gold  or  412%  grains  of  standard  silver,  coined  without  limit,  and  therefore 
that  we  may  now  honorably  and  with  good  faith  establish  unlimited  coinage 
of  silver  at  the  same  ratio  of  16  to  1,  when  silver  has  fallen  more  than  one- 
half,  and  use  such  depreciated  dollars  to  pay  our  public  debt. 

Bear  in  mind  that  we  are  discussing  this  question  from  the  point  of 
honor  and  good  faith  and  not  from  the  point  of  power  or  technical  legal 
right,  for  I  have  already  said  that  the  Government  can  do  as  it  please^. 


7 

THE   MEANIMG  OF   '^STANDABD   COIN." 

fhe  fact  is,  and  no  one  questions  it,  that  in  1870  whenever  the  words 
"standard  coin"  v/ere  used,  they  referred,  in  the  understanding  of  the  mar- 
kets, to  gold  coin.  Almost  no  silver  dollars  had  been  coined  for  circulation 
for  years,  and  none  were  in  actual  circulation.  Tlie  silver  dollar  was  in. 
1870  woirtli  over  2  cents  more  than  the  gold  dollar.  All  the  loans  under 
that  act  were  paid  into  the  Treasury  in  gold  or  its  equivalent,  and  nobody 
thought  of  a  silver  dollar  in  that  conaection. 

More  than  three-fourths  of  the  outstanding  bonds  were  as  a  matter  of 
fact  Issued  and  sold  after  1873,  when  the  silver  dollar  was  dropped  from 
the  list  of  coins.  Now,  in  view  of  these  facts,  after  the  Government  has 
sold  all  its  bonds  for  gold,  after  it  has  paid  all  its  matured  bonds  in  gold 
or  its  equivalent  for  so  many  years  without  any  deviation,  after  the  law  pro- 
viding for  the  free  and  unlimited  coinage  of  silver  at  the  ration  of  16  to  1 
has  been  repealed  for  twenty-five  yeai's,  would  it  be  good  faith  for  Congress, 
now  that  silver  has  so  greatly  depreciated,  to  restore  its  free  and  unlimited 
coinage  at  the  ratio  of  16  to  1  when  the  market  ratio  is  33  to  1,  and  then 
use  such  dollars  to  pay  the  bonds  which  we  had  sold  for  gold  under  such 

circumstances  ? 

NO   TIME   FOR   TRIFLING. 

I  do  not  think  it  would.  I  have  so  high  an  appreciation  of  the  sense  of 
honor  of  gentlemen  on  the  other  side  even  that  I  can  not  bring  myself  to 
believe  that  they  in  their  hearts  believe  it  would.  I  fear  that  many  of  you 
are  resting  on  the  expfectation  which  you  have  that  nothing  of  this  kind 
will  be  done  and  are  excusing  your  vote  for  it  on  the  unworthy  idea  that  you 
are  "playing  politics.'' 

If  so,  I  beg  of  you  to  not  trifle  with  the  honor  and  good  faith  of  the  nation 
for  any  such  miserable  end,  for  rest  assured  such  an  expression  of  opinion 
as  to  the  sense  of  honor  of  the  people  of  tKs  country  contemplated  by  this 
resolution  under  existing  conditions  would  seriously  injure  the  credit  of  the 
country  and  tend  te  weaken  reviving  confidence. 

Let  me  read  to  gentlemen  on  the  other  side  the  patriotic  utterance  of  a 

Democratic  Senator,  Mr.  C^ffery,  only  a  few  days  ago,  who  said  in  reference 

to  this  resolution: 

A  DEMOCRATIC  SENATOR'S  VIEW. 

"I  do  not  agree  that  a  great  government,  having  iu  it*  power  the  passage  of  an  act  which  will 
depreciate  its  owu  coin,  and  passing  the  act,  )ias  a  rigbt  to  say  to  the  public  creditor,  *I  have  depreci- 
ated the  coin  which  I  have  the  option  to  pay  in,  and  1  will  pay  you  the  depreciated  coin;  and  that 
discharges  luy  obligation  according  to  the  stipulation  of  the  bond.'  If  that  is  morality,  I  do  not  know 
what  morality  is.  If  to  take  advantage  of  an  act  of  the  Goveruiiieut,_the  Government  being  the  debtor, 
having  in  its  power  to  debase  it*  own  obligations,  is  not  a  violation  of  the  public  faith,  my  feeble  mind 
caw  not  conceive  of  an  instance  where  public  faith  could  be  violated  by  an  act  of  turpitude  or  dishonor." 


Mr.  Speaker,  there  is  another  phase  of  this  subject  which  should  not  be 
ignored.  The  pending  resolution  refers  specifically  only  to  the  payment  of 
the  interest-bearing  obligations  of  the  Government.  In  spirit,  however,  it 
includes  the  five  hundred  millions  of  legal-tender  demand  notes  of  the  Gov- 
ernment which  are  used  as  currency.  If  it  be  honest  and  in  good  faith  to 
pay  our  interest-bearing  obligations  in  silver  dollars  coined  under  unlimited 
•coinage  at  the  ratio  of  16  to  1,  and  therefore  worth,  as  standard  silver  dol- 
lars coined  in  the  same  way  and  at  nearly  the  same  ratio  in  Mexico  are 
worth,  less  than  50  cents  each,  then  it  is  also  honest  and  in  good  faith  to  use 
the  same  kind  of  dollars  in  redeeming  our  demand  obligations. 

And  this  step  would,  of  course,  depreciate  every  greenback  and  Treasury 
note  one-half,  as  well  as  all  of  our  present  silver  dollars  and  silver  certificates, 
and  at  once  deprive  us  of  all  our  gold  for  use  as  money.  What  the  ehect  of 
such  a  depreciation  of  our  dollar  and  of  all  of  our  currency,  and  such  a  loss 
of  all  our  geld,  would  have  on  the  industries  and  business  of  this  country  and 
on  the  wages  which  are  now  paid  to  the  masses  of  our  people  in  money  as 
good  as  gold  can  be  faintly  imagined,  but  not  fullj'  appreciated  until  such  a 
disaster  should  overtake  us. 

EVEBY  DOLLAR  OF  CURRENCY  AS  GOOD  AS   GOLD. 

The  one  pivotal  pri'hciple  on  which  we  should  stand  is  that  every  dollar 
of  cur  currency,  whether  silver  or  paper,  shall  be  kept  as  good  as  gold.  We 
favor  whatever  full  legal-tender  silver  can  be  maintained  at  an  equality  of 
value  or  purchasing  power  with  gold,  even  the  free  and  unlimited  coinage  of 
silver  at  a  fixed  ratio  with  gold,  whenever  an  international  agreement  of  the 
leading  commercial  nations  can  be  secured  to  that  end,  which,  in  our  judg- 
ment, is  the  only  way  in  which,  under  existing  conditions,  the  concurrent 
circulation  of  gold  and  silver  under  free  and  unlimited  coinage  can  be  secured. 

If  it  be  claimed  by  our  16  to  1  free  silver  friends  that  such  an  interna- 
tional agreement  can  not  be  secured,  which  I  do  not  admit,  then  I  reply  that 
full  bimetallism,  by  which  I  mean,  as  is  popularly  understood,  the  concur- 
rent circulation  of  both  gold  and  silver  full  legal-tender  coins  under  un- 
limited coinage,  is  possible  under  existing  conditions  in  no  other  way;  and 
I  can  only  add  that  M.'  Meline,  the  French  premier,  recently  stated  in  the 
French  Chamber  of  Deputies  that  this  Is  the  view  which  France  holds. 

And  I  further  reply  that  in  such  a  contingency  the  only  way  that  remains 
to  secure  the  concurrent  circulation  of  both  gold  and  silver  legal-tender  coins 
is  by  limited  coinage,  which  is  precisely  the  method  by  which  we  have  to-day 
four  hundred  and  fifty-six  millions  of  full  legal-tender  silver,  all  but  seven- 
teen millions  of  which  are  in  circulation  either  in  the  form  of  coin  or 
certificates  of  deposit,  and  precisely  the  method  by  which  France  has  about 


four  hundred  millions  of  such  silver  in  use  as  money— all  in  both  countries 
kept  as  good  as  gold. 

16   TO    1   MEANS   SILVER  MONOMETALLISM. 

And  I  still  further  reply  that  the  free  and  unlimited  coinage  of  silver  at 
the  ratio  of  16  to  1  by  this  country  alone,  which  our  silver  friends  dub 
"bimetallism,"  would  simply  result  in  silver  monometallism  by  taking  gold 
out  of  use  as  money  in  this  country,  just  as  it  h'as  resulted  in  Mexico  and 
every  other  country  which  has  tried  it  under  the  conditions  that  have  ex- 
isted since  the  great  reduction  in  the  cost  of  producing  silver  and  the  un- 
exampled increase  in  the  yield  of  that  metal  in  the  last  quarter  of  a  century. 

It  is  because  I  believe,  as  does  every  scientific  bimetallist  in  the  world 
outside  of  politics,  that  16  to  1  fi'ee  and  unlimited  silver  by  this  country  alone 
would  make  the  United  States  a  silver  monometallic  country  like  Mexico  and 
China,  and  would  give  us  a  silver  basis  that  would  obstruct  our  trade  with 
gold-standard  countries  that  now  take  90  per  cent,  of  our  exports,  and  prove 
a  serious  menace  to  our  progress,  and  because  I  believe  that  it  would  seri- 
ously injure  our  credit  and  standing  as  a  nation,  that  I  appeal  to  gentlemen 
on  this  side  of  the  House  to  maintain  the  pledge  which  the  Republican  party 
made  at  St.  Louis  to  keep  all  our  currency,  whether  silver  or  paper,  as  good 
as  gold  and  preserve  inviolable  the  public  faith  and  credit,^  and  to  gentlemen 
on  the  other  side  of  the  House  to  maintain  the  standard  of  value  which 
Jackson's  Administration  gave  the  country  sixty-four  years  ago  and  the 
honor  and  good  faith  of  the  nation  so  carefully  preserved  by  the  fathers  of 
the  Democratic  party,  and  to  take  the  opportunity  offered  by  the  resolution 
now  before  the  House  to  show  to  the  country  and  world  that  the  good  name 
of  the  nation  is  safe  in  our  hands.     (Loud  applause  on  the  Republican  side.) 

HOW  THE   TELLER  RESOLUTION   PASSED   THE   SENATE. 
(From  the  remarks  of  Hon.  Albert  J.  Hopkins,  of  Illinois.) 

How  does  it  happen  that  the  Senate  has  become  a  free-silver  legislative 
body?  Mr.  Speaker,  it  is  easy  of  explanation.  Under  our  constitutional 
form  of  government  the  Senators  of  the  United  States  are  elected,  not  by  the 
people,  as  are  the  members  of  this  House,  but  by  States.  Each  State  is  en- 
titled to  two  representatives  in  the  Senate  regardless  of  the  population  of  the 
State.  It  so  happens,  therefore,  that  the  State  of  Nevada  has  two  representa- 
tives in  the  United  States  Senate  who  voted  for  this  resolution  now  under 
consideration.  The  State  of  Illinois  has  only  two  Senators  in  that  body,  and 
they  voted  against  it. 

We  thus  see  that  Nevada  in  the  Senate  of  the  United  States  has  the  same 
legislative  vote  as  the  State  of  Illinois.    In  1896  the  whole  number  of  votes 


If 

cast  In  Nevada  asgregat«d  only  10,815,  while  in  Illinois  the  whole  number 
of  votes  cast  was  1,089.888.  Ten  thousand  voters  in  the  liitle  State  of  Nevada 
are  thus  enabled,  in  the  Senate  of  the  United  States,  under  existing  constitu- 
tional conditions,  to  have  the  same  power  and  voting  capacity  that  1,089,888 
voters  have  in  the  State  of  Illinois.  Less  than  40,000  inhabitants,  who  fcrm 
the  population  of  the  State  of  Nevada,  in  the  Senate  of  tke  United  States, 
on  a  great  question  like  the  one  now  under  consideration,  can  offset  the 
power  and  authority  of  more  than  4,000,000  people  who  form  the  present 
population  of  the  great  State  of  Illinois. 

The  vote  in  the  Senate  which  adopted  this  resolution  and  sent  it  to  the 
House  for  consideration,  as  announced,  was  ayes  47,  nays  22,  thas  giving  a 
majority  of  15  votes  in  favor  of  the  resolution.  These  15  Senators  who  con- 
stitute the  free-silver  majority  in  the  Senate  of  the  United  States  come 
from  the  States  of  Colorado,  Wyoming,  Idaho,  Montana,  Washington, 
South  Dakota,  Ifevada,  and  Utah.  The  entire  population  of  these  States 
aggregates  only  1,621,311,  which  is  3,400,000  less  than  the  population  of 
the  State  of  Illinois  alone. 

It  is  from  these  figures  easy  to  determine  the  fact  that  the  sparsely  settled 
silver  States  have  in  the  Senate  of  the  United  States  an  influence  vastly 
greater  than  their  population  and  importance  warrant.  The  Senators  who 
voted  against  the  adoption  of  this  resolution  when  it  was  considered  in  the 
Senate  the  other  day  represent  In  the  aggregate  5,000,000  people  more  than 
those  who  favored  the  resolution.  It  is  thus  made  clear  that  the  action  of 
the  Senate  cannot  be  taken  as  a  fair  expression  of  the  sentiment  of  the 
people  of  this  counti*y  on  the  great  question  embodied  in  the  resolution. 


>«  4  >»   >< 


INJUBY  TO   NIMETY-NINE  TO   STRIKE  A   BLOW  AT   ONE. 
(From  the  Speech  of  Hon.  Thomas  H.  Tongue,  of  Oregon.) 

It  is  by  law  declared  to  be  the  established  policy  and  duty  of  this  Gov- 
ernment "to  maintain  the  two  metals  on  a  parity  with  each  other"  and  "to 
maintain  at  all  times  the  equal  power  of  every  dollar  coined  or  issued  by  the 
United  States  in  the  markets  and  in  the  payment  of  debts." 

The  friends  of  the  resolution  under  consideration  in  the  Senate  voted 
down  an  amendment  substantially  declaring  the  existence  of  this  law.  That 
vote  has  neither  changed  nor  repealed  nor  weakened  the  binding  provisions 
of  the  statute.  But  why  vote  down  such  an  amendment?  If  deemed  neces- 
sary or  important  to  declare  what  the  existing  law  is,  why  not  declare  it 
fully  and  truthfully?  But  this  vote  on  the  part  of  the  friends  of  this  resolu- 
tion, and  under  the  lead  of  the  Senator  who  introduced  it,  was  significant.-'  It 
c^ii  have  no  other  meaning  than  a  declaration  of  the  intention  of  the  friends 


H 

of  this  resolution  that.  If  intrusted  with  executive  and  legislative  power,  they 
will  destroy  the  parity  now  maintained  between  the  two  metals  and  refuse  to 
"maintain  the  equal  power  of  every  dollar  coined  or  issued  by  the  United 
States  in  the  markets  and  in  the  payment  of  debts."      ♦        *       »        •        • 

Why  make  the  bonded  indebtedness  the  occasion  for  a  national  fix  ancial 
policy?  Why  seek  to  bring  disturbance  into  our  business  arrangements,  to 
inflict  severe  injury  upon  99  per  cent,  of  the  creditors  of  the  United  States  in 
order  to  strike  a  vicious  blow  at  1  per  cent.?  You  can  not  coin  a  dollar  for  the 
payment  of  bonds  that  will  not  be  used  to  pay  labor,  to  pay  pensions,  to  pay 
insurance  policies,  to  pay  bank  depositors,  and  to  pay  the  farmer  for  every 
product  he  has  to  sell.  There  should  be  and  can  be  no  misunderstanding 
of  the  purpose  and  intent  of  the  friends  of  this  resolution.  It  is  proposed 
to  abandon  the  present  monetary  standard  of  the  United  States,  the  standard 
we  have  maintained  for  more  than  fifty  years,  the  standard  of  every  intelli- 
gent, civilized  country,  the  standard  by  which  all  our  property  has  been 
bought  and  sold,  by  v/fcich  all  our  business  transactions  have  been  measured, 
and  to  commit  us  to  the  standard  of  semicivilization  and  barbarism. 

It  proposes  to  abandon  bimetallism  in  practice  and  in  business  for  silver 
monometallism.  It  proposes  the  most  stupendous  ex  post  facto  law  ever  coa- 
ceived  in  the  brain  of  the  wildest  dreamer.  It  proposes  that  the  standard  by 
which  business  transactions  and  business  contracts  amounting  to  $40,000,- 
000,000  were  measured  at  the  time  of  the  making  shall  be  changed  at  the 
time  of  the  settlement,  and  that  the  settlement  of  these  business  transactions 
shall  be  measured  by  a  standard  not  contemplated  by  either  party.  It  pro- 
poses such  a  stupendous  revolution  that  it  would  stop  business,  paralyze  in- 
dustry, bind  the  hands  of  enterprise,  take  from  labor  both  its  employment  and 
its  rev/ard,  and  precipitate  national  and  industrial  bankruptcy. 


THE  SHOP  LABOBEE,  EQUALLY  INTERESTED  WITH  THE  BOND- 

HOLDEB. 

(Hon.  D,  B.  Henderson,  of  Iowa.) 
Severe  reference  has  been  made  in  this  debate  to  the  recent  utterance  of 
President  McKinley  when  addressing,  January  27  last,  the  great  National 
Association  of  Manufacturers.    What  did  he  say?    Listen  to  him: 

The  United  Stated  will  discharge  all  of  Its  obligatioas  in  the  currency  recognized  as  the  best 
throughout  the  civilized  world  at  the  time  of  payment. 

There  is  the  language  of  a  patriot  and  of  an  honest  man.  This  resolution 
would  cut  in  two  every  dollar  to  be  paid  by  the  Government  upon  its  bonded 
obligations.  Cut  that  in  two  and  you  will  cut  in  two  every  dollar  in  the 
country,  whether  paid  to  bondholders  or  to  contractors,  laborers,  pensioners, 
or  Government  employees.  In  brief,  gold  would  be  driven  out  and  free  coin- 
age of  silver,  with  silver  monometallism  and  a  50-ceut  dollar,  would  follow- 


12 

Ruin  to  capital  and  labor  would  result,  and  suffering  such  as  our  people 
have  never  known  would  certainly  follow.  President  McKinley,  the  Repub- 
lican party,  and  hundreds  of  thousands  of  patriotic  Democrats  voted  against 
this  in  1896,  and  will  again  In  1900  with  such  an  issue  before  them. 

While  the  Republican  party  is  in  power  such  conditions  will  not  be  al- 
lowed to  blight  our  land. 

Mr.  Speaker,  in  this  battle  I  recognize  a  familiar  monogram  which  I  saw 
upon  the  Bryan  banner  in  the  last  national  campaign. 

Mr.  BAILEY.    And  you  will  see  it  there  in  the  next  one,  too. 

Mr.  HENDERSON.  All  right;  and  we  will  tear  It  down  as  we  did  last 
time.  (Applause  on  the  Republican  side.)  That  monogram  is  "R.  R.  R.." — 
Radical,  rascally  repudiation.     That  is  your  monogram. 

Now,  what  does  this  declaration  mean?  It  is  nothing  but  a  repetition 
of  the  howling  recently  heard  in  Demo-Popocratic  national  conventions. 
That  is  ail.  To  pass  resolutions,  as  you  did  at  Chicago,  to  be  trampled  under 
foot  by  the  Sound-Money  Republicans  and  Democrats  of  this  Republic. 
(Loud. applause  on  the  Republican  side.)  Do  not  do  that,  boys;  do  not  in- 
terrupt, as  my  time  is  limited. 

Kowl  at  the  bondholders,  scold  away,  gentlemen,  but  you  cannot  pare 
down  the  money  to  be  paid  to  the  bondholders — and  here  I  want  the  attention 
of  my  friend  from  Ohio  (Mr.  Norton) — without  cutting  in  two  the  pension 
money  paid  to  the  old  soldier  and  his  widow.  (Applause  on  the  Republican 
side  and  jeers  on  the  Democratic  side.)  You  cannot  cut  in  two  the  money  to 
be  paid  to  one  citizen  of  the  Republic  without  cutting  in  two  the  money  to 
be  paid  to  the  laborer  in  the  shops  of  my  country. 

Mr.  SIMPSON,  of  Kansas.     How  about  the  old  pensioner? 

Mr.  HENDERSON.  A  man  is  a  very  mean  man  who  would  try  to  steal 
a  piece  of  five  minutes  (laughter),  and  none  but  a  Popocrat  would  do  it,  too. 
(Renewed  laughter.)  What  does  this  proposition  mean?  What  is  this  dec- 
laration for?  It  is  to  put  this  country  on  a  single  silver  standard,  on  silver 
monometallism,  cutting  in  two  the  dollars  paid  to  the  hard-handed  farmer  in 
my  State  and  in  yours,  to  the  toiler  in  the  shop,  the  pensioner,  and  every 
man  who  wants  to  give  honest  work  for  honest  pay. 

Confound  the  party  that  will  advocate  such  a  doctrine!  (Laughter  on 
the  Democratic  side  and  loud  applause  on  the  Republican  side.)  You  talk 
about  the  declaration  of  McKinley.  God  bless  little  Mac  for  what  he  said. 
(Loud  applause  on  the  Republican  side.)  "Every  creditor  shall  be  paid  in  the 
best  money."  That  takes  in  the  bondholder,  the  hodholder,  the  plowholder, 
the  penholder,  and  the  holder  of  pension  vouchers.  Face  this  music,  as  you 
have  started   it.     You  say  you  want  to  "meei  the   Republicans  across  the 


18 

aisle."  All  right.  Meet  the  boys  across  the  aisle  now,  in  November,  and  in 
1900,  and  we  will  thrash  you  even  worse  than  we  thrashed  you  before.  ,  (Loud 
cheers  on  the  Republican  side.) 


»4  4»»  K- 


COISTDITIONS  UNDEE,  WHICH  THE   16  TO   1   RATIO  WAS  SAFE. 
(From  the  speech  of  Hon.  Charles  ia.  Grosvenor,  of  Ohio.) 

In  the  Ohio  Legislature  of  1876-77  a  resolution  was  brought  in  which  I 
will  show  you  was  in  exact  consonance  with  the  Republican  attitude  of  that 
day  and  not  in  any  degree  inconsistent  with  the  attitude  of  the  Republican 
party  of  this  day.  Let  me  call  your  attention  to  two  conditions  v/hich  then 
existed.  First,  the  relative  value  of  gold  and  silver,  the  I'atio  betv/een  the 
silver  in  a  dollar  and  the  gold  in  a  dollar,  wcs  17.22  to  1,  varying  by  only 
this  small  fraction  from  the  legal  distinction  betv>-een  the  gold  and  the  silver 
dollar.  The  divergence  had  been  fluctuating — sometimes  a  little  higher,  some- 
times a  little  lov/er;  but  the  divergence  at  that  time  was  so  small  that  there 
was  a  general  impression  in  the  Republican  party,  west  of  the  mountains  at 
least,  that  by  restoring  the  coinage  of  the  silver  dollar  and  its  restoration 
to  the  uses  of  the  Government  as  money  of  red6mption  there  might  be  a 
coming  together  of  the  two  metals  which  would  render  unnecessary  any 
further  agitation  of  the  question. 

There  was  pending  in  the  Congress  of  the  United  States  a  proposition — it 
may  not  have  been  drafted  into  a  bill — which  afterwards  became  k;nown  as 
the  Bland-Allison  Act.  That  act  provided  for  the  purchase  of  a  certain 
amount  of  silver,  to  wit,  two  and  one-half  million  ounces,  and  the  coinage 
of  it  into  silver  dollars  that  should  be  lawful  money  for  the  redemption  of 
the  currency  of  the  country.  Under  the  fear,  wliich  no  man  could  explain 
or  answer,  that  the  Government  might  be  put  to  protest  upon  its  legal- 
tender  paper,  on  the  1st  of  January,  1879,  the  Legislatures  of  a  number  of 
Republican  States  of  the  country  passed  resolutions  looking  to  the  further- 
ance of  the  enactment  of  the  Bland-Allison  law. 

A  resolution  of  that  character  made  its  appear.^.nce  in  the  Legislature  of 
Ohio.  I  was  a  member  of  that  Legislature.  Both  branches  of  the  Legislature 
were  strongly  Republican.  That  resolution  was  introduced  in  the  Senate  by 
a  Republican  Senator;  it  wag  reported  favorably  by  a  Republican  commit- 
tee; and  it  was  passed,  if  my  recollection  is  not  at  fault,  without  a  dissent- 
ing voice.  There  was  not  more  than  one  Senator,  if  any,  who  voted  against 
it.  It  came  to  the  Ohio  House  of  Representatives.  It  was  referred  to  a 
committee;  it  was  reported  back  from  the  committee,  as  I  recollect,  by  a 
unanimous  vote,  and  passed  in  the  House  by  a  vote  of  every  member  of 
the  House,  both  Democrat  and  Republican;  and  by  an  examination  of  the 
record  I  find  that  I  went  out  of  my  usual  way  and  voted  for  the  measure, 
although  I  was  Speaker  of  the  House,  and  not  ordinarily  called  upon  to  vote. 


That  was  the  unanimous  voice  of  the  Republicans  and  Democrats  of  the 
State  of  Ohio.  In  what  did  it  culminate?  It  culminated  in  the  passage  of 
the  Bland-Allison  Act.  These  votes  of  members  of  Congress  that  have  been 
spoken  of  here  so  fluently  were  cast  in  the  approaching  hours  of  the  conflict 
that  ended  in  the  enactment  of  the  Bland  bill  amended  by  the  Allison  amend- 
ment. 

So  the  Republicans  made  their  record.  They  were  in  favor  of  the  two 
metals;  strictly  speaking,  in  favor  of  bimetallism  in  the  coinage  of  the  coun- 
try so  long  as  there  would  be  no  wider  discrepancy  than  that  which  existed 
in  1877  and  1878. 

Then  came  the  Bland-Allison  Act,  and  I  shall  not  travel  through  the 
years  that  it  was  on  the  statute  books  of  the  country.  It  was  repealed  by 
what  we  called  the  Sherman  Act,  for  which  I  voted,  and  which  was  in  sub- 
stance a  Republican  measure.  Then  came  the  repeal  of  the  Sherman  Act 
in  Its  purchasing  clause  at  the  demand  of  a  Democratic  Administration. 
And  now  I  want  you  to  bear  in  mind  that  the  attitude  of  Mr.  Cleveland  to 
this  silver  question  was  just  as  well  known  in  1885  as  it  ever  became  known. 
He  had  written  his  famous  letter  to  General  Warner  before  taking  his  seat 
as  President  of  the  United  States,  denouncing  the  whole  plan  and  theory 
of  bimetallism,  and  yet  you  Democrats  not  only  supported  his  Administra- 
tion through  four  years,  but  you  renominated  him  for  President  in  1888. 
It  was  at  his  demand  that  Congress  came  together.  It  was  at  his  demand 
that  you  marshaled  the  Democratic  power  on  the  floors  of  the  two  branches 
of  Congress  in  extra  session. 


GENERAL  GRANT  SAID  OUR  BONDS  WERE  PAYABLE  IN  GOLD. 
(From  the  speech  of  Hon.  J.  P.  Dolliver,  of  Iowa.) 

My  friend  from  Missouri  (Mr.  Bland)  says  that  nobody  is  in  favor  of 
the  settlement  of  the  public  debt  in  gold  except  the  bankers  and  brokers  and 
the  money  power.  And  he  inquires  where  we  get  the  inspiration  for  such 
treatment  of  the  bonded  indebtedness  of  the  United  States.  I  do  not  know 
where  he  gets  his  inspiration,  but  I  know  where  the  Republican  party  get 
theirs.  They  get  it  from  the  history  and  record  of  the  times  when  the  debt 
was  contracted,  as  Interpreted  in  the  first  inaugural  address  of  Ulysses  S. 
Grant  as  President  of  the  United  States,  who  was  elected  upon  a  platform 
requiring  the  Government  of  the  United  States  to  make  good  its  promise 
to  pay  its  debts  in  dollars  which  every  human  being  at  that  time  under- 
stood to  be  the  gold-coin  dollars  of  the  United  States.  What  did  General 
Grant  say? 

"To  protect  the  national  honor  every  dollar  of  Government  Indebtedness 
should  be  paid  in  gold,  unless  otherwise  expressly  stipulated  in  the  contract" 

(Applause  on  the  Democratic  side.) 


u 

Now,  I  ask  these  gentlemen,  will  any  man  rise  and  state  what  bond 
issue  of  the  TTnited  States,  made  to  provide  money  to  carry  on  the  war,  con- 
tained tlie  express  stipulation  that  it  'cvas  to  be  paid  otherwise  than  in  gold? 

Mr.  WILLIAMS,  of  Mississippi.  Every  bond  which  says  •'coin"  says 
otherwise  than  gold.     It  says  "either  gold  or  silver." 

Mr.  DOLLIVER.     When  I  was  speaking  a  moment  ago,  the  Democratic 

party  on  this  floor,  with  its  irrelevant  applause,  nearly  ruined  my  speech 

(laughter)  und'i'rtaking  to  interpret  the  meaning  of  General  Grant  when  lie 

used  the  words  in  his  first  inaugural — "unless  otherwise  expressly  stipulated 

in  the  contract" — which  I  had  the  honor  to  read.    It  will  take  me  less  than  a 

minute  to  read  for  the  benefit  of  the  House  the  interpretation  of  those  words 

put  upon  them  by  General  Grant  himself.    I  read  from  a  letter  of  his  to  Mr. 

Washburn,  from  Paris,  in  1878,  contained  in  the  North  American  Review 

for  August,  1897: 

The  whole  Democratic  party  cried  Itself  hoarse  over  the  outrage  upon  the  Constitution 
when  the  nation  in  its  desperation  adopted  tlie  "legal  tender  note."  Now  the  whole  party 
seems  to  bo  willing  to  Issue  an  unlimited  quantity  of  this  money  in  spite  of  their  previous 
declaration,  in  spite  of  the  solemn  promise  that  above  a  certain  amount— four  hundred 
million—should  not  be  issued,  in  spite  of  the  solemn  obligation  that  those  issued  should  be 
redeemed  in  coin,  understood  at  the  time  to  be  gold  coin. 

(Applause  on  the  Republican  side.) 

Yet  it  is  to-day  elaimed  on" this  floor  that  the  contract  to  pay  In  paper 
was  wickedly  changed  ao  as  to  make  paper  bonds  payable  in  coin,  and  the 
word  "coin"  wickedly  changed  to  mean  "gold." 

What  are  the  facts? 

The  loan  act  which  authorized  the  5.20  bonds  became  a  law  February 
25,  1862.  Jay  Cooke  &  Co.  were  the  loan  agents  of  the  Government.  By 
the  authority  of  the  Secretary  of  the  Treasury  these  agents  advertised  a 
C  per  cent,  loan,  interest  And  principal  payable  in  coin.  There  Is  not  a 
loan  bill  on  the  statute  books  by  which  the  kind  of  money  In  which  coupon 
or  principal  is  payable  is  mentioned,  and  yet  the  hard-money  policy  of  the 
Government  has  been  uniform. 

The  question  wap  not  raised  during  the  finance  debate  of  1862.  The  evi- 
dence is  overwhelming  that  these  bonds  were  to  be  paid  in  coin.  A  sinking 
fund  of  coin  was  set  apart  to  be  used  each  year  to  liquidate  the  very  debt 
that  was  being  created.  At  that  date  nobody  supposed  the  legal-tender  cur- 
rency would  be  issued  beyond  the  $150,000,000  authorized,  whereas  the  prin- 
cipal of  these  bonds  was  $500,000,000.  Every  member  of  Congress  knew  It. 
They  were  sold  alongside  of  the  coin-bearing  bonds  under  the  10-40  act  and 
met  as  ready  a  sale.  Can  any  man  believe  that  the  buyers  understood  that 
they  were  getting  paper  bonds?    I  have  examined  the  contemporaneoua  d«- 


1« 

bates  and  I  say  to  you  that  at  the  crisis  in  which  these  securities  were  issued 

no  man,  here  or  abroad,  supposed  they  were  to  be  paid  otherwise  than  in  coin. 

No  member  of  either  House  of  Congress  suggested  such  a  thing.    I  have 

heard  the  old  wheel  horse  of  the  Administration  of  Lincoln  summoned  from 

his  grave  to  lend  the  weight  of  his  influence  to  the  schemes  of  the  inflationists. 

I  am  prepared  to  show  that  Mr.  Stevens  never  gave  a  syllable  of  conntenance 

to  paper-money  payment  until  long  after  the  contracts  had  been  made.     I 

find  In  his  speech  on  the  loan  bill  In  the  House  on  February  6,  1862,  three 

direct  admissions  that  in  his  view  the  bonds  were  redeemable  after  twenty 

years  in  gold.    In  the  same  debate  Mr.  Hooper,  a  member  of  the  Committee 

on  Ways  and  Moans,  of  which  Mr.  Stevens  was  chairman,  used  this  language 

(Globe,  second  session  Thirtj--seventh  Congress,  page  691): 

The  proposed  issue  of  Government  notes  guards  against  this  effect  of  inflating  the  currency  by  the 
provision  to  convert  them  into  Government  bonds,  the  principal  and  interest  of  which,  as  before  stated 
are  payable  in  specie. 

This  was  after  the  committee  had  reported  the  bill  almost  unanimously. 
Mr.  Stevens  rose  immediately  afterwards  and  suggested  that  the  debate  close 
without  intimating  that  Mr.  Hooper  was  wrong.  I  am  convinced,  not  as  a 
partisan,  but  as  an  honest  investigator,  that  the  Government  and  the  public 
understood  this  contract  alike.  In  the  debate  of  1863  on  the  10-40  loan  act, 
the  intimation  was  for  the  first  time  made  that  the  paper  of  the  Government 
could  pay  the  5-20  bonds. 

At  this  point  in  the  debate  Mr.  Thomas,  of  Massachusetts,  moved  the 
express  provision  for  payment  in  coin,  which  was  carried  after  this  remark 
from  Mr.  Horton,  an  influential  member  of  the  Ways  and  Means  Committee, 
from  Ohio. 

I  wish  to  5tate  here  that  the  Committee  on  Ways  and  Heans  in  framing  this  bill  never 
dreamed  that  these  twenty.year  bonds  would  be  payable  in  anything:  other  than  gold  until 
the  jfentleman  yesterday  told  it  upon  the  floor  of  the  House.  I  say  to  the  gentleman  and  to 
this  House  that  I  never  heard  an  expression  that  these  bonds  were  to  be  paid  in  anything 
other  than  coin.  The  form  hert  proposed  is  the  form  always  used  by  the  Government,  and 
they  have  always  been  paid  in  coin  up  to  this  day.— Globe,  first  session  Fortieth  Congress, 
page  8oo. 

To  learn  the  truth  of  these  contracts  an  intelligent  man  has  only  to  turn 
to  the  reports  of  Secretary  Fessenden  and  the  official  messages  of  the  Presi- 
dent and  the  concurrent  and  unanimous  judgment  of  both  Houses  of  Congress. 
The  agreement  interpreted  by  the  history  of  the  times  was  to  pay  them  in 
money  and  not  in  depreciated  promissory  notes.  And  the  only  coined  money 
known  at  the  mints  or  in  the  business  of  the  people  was  gold.  Without  that 
understanding  not  a  bond  would  have  been  taken  in  any  market.  Bvtll  Run 
was  not  a  very  good  advertisement  for  United  States  bonds.  The  existence 
of  the  Government,  not  to  speak  of  its  solvency,  was  at  stake  when  these 
bonds  were  put  upon  the  doubtful  markets  of  Europe  and  America. 


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